The FCA has taken legal action against individuals promoting unauthorised forex trading schemes on Instagram, marking a significant move against misleading financial promotions.
In a landmark enforcement action, the UK’s Financial Conduct Authority (FCA) has charged nine individuals for promoting unauthorised foreign exchange trading schemes via Instagram. This marks the regulator’s first major crackdown on so-called “finfluencers”—social media influencers who promote financial products without proper authorisation.
Between May 2018 and April 2021, Emmanuel Nwanze and Holly Thompson allegedly offered advice on trading high-risk contracts for difference (CFDs) without FCA authorisation. Nwanze is also accused of paying seven other influencers, including Biggs Chris, Jamie Clayton, Lauren Goodger, Rebecca Gormley, Yazmin Oukhellou, Scott Timlin, and Eva Zapico, to promote their Instagram account, collectively reaching 4.5 million followers.
All nine individuals face charges related to issuing unauthorised financial promotions, with Nwanze also charged with operating an unauthorised investment scheme. These offences can result in fines and up to two years in jail. The accused are scheduled to appear in court on June 13
The FCA’s action underscores the growing concern over unregulated financial advice on social media platforms and the potential risks posed to retail investors. The regulator has advised anyone affected by these schemes to contact its consumer contact centre.
