Article by Phil
The Financial Conduct Authority (FCA) says that it is cracking down on online financial advice from unregulated and unqualified fin-influencers.
It says that it seen an increase of 170% in its enforcement actions.
In reality this meant that it took some kind of action in just 75 cases in 2025. Over the last five years the number of cases has been only 110. When you drill down further into the detail, you find that legal action was taken in only 15 cases. The rest of the action has involved a warning or at worst an interview with the regulator. So, whilst the FCA is trying to talk tough, fin-influencers are still getting away with providing unregulated and harmful online financial advice.
As we’ve looked at before. Evidence from Tik Tok showed that only 1 in 20 videos included the required warnings and in nearly 80% of cases the information provided was incorrect. The FCA seems to be lagging behind on enforcement with Canada for example taking action in twice as many cases.
According to a recent report in IFA Magazine, social media is now the #1 platform for spam advertising and scams. Taking over from e mail as the preferred route.
Facebook is now apparently responsible for 15 billion high risk financial adverts every single day. Not from us of course!
Things to look out for as always are adverts which promise unrealistic returns on investments or those which need immediate action, or you will lose out. Millions of adverts now divert users to WhatsApp which is an even more unregulated platform. Please do not do business with anyone you don’t know though WhatsApp.
Fin influencers fined.
Seven so called “celebrity” fin influencers have been fined by the Financial Conduct Authority. The fines relate to unauthorised financial promotions on Instagram. The promotions were for high-risk foreign exchange trading schemes. The influencers had no expertise to make the promotion or any authority to do so. They were just being paid for the promotion to their followers.
The fines ranged from £3,750 to £600 but there were also costs to pay of between £1,000 and £6,000. I think they should have been fined more.
Crypto financial advice risks
Of course, one of the main targets for online financial advice is crypto.
We don’t provide any advice on crypto. Our view is the same as the FCA’s long held view which is that you should expect to lose all your money if you speculate in crypto. If you can afford to lose your entire investment, then you are not at risk.
Although the FCA did allow Crypto Exchange Traded Platforms (ETP’s) to be held in the UK back in October last year.
Since then, their value has fallen by an average of over 40%, with the value of Bitcoin almost halving. Imagine having lost half your investment in just five months. Sounds like the FCA’s position makes sense.
Scam warnings continue.
The Financial Ombudsman Service (FOS) continues to warn people to be vigilant over scams. Not just crypto but also authorised push payment (APP) scams. This is where you are tricked into making a payment, usually using your card. FOS received over 20,000 APP scam reports last year.
Clear websites are important
According to the FCA online financial advice websites can help to beat scams and fraud by being much clearer and transparent. Especially about the risks of investments. And the costs of advice. The push is to create an online expectation that fees and charges are always clearly disclosed and never hidden.
We’ve published our clear pricing structure on our website for years now.
Is AI-based advice worthwhile?
I’m not sure is the answer. But studies show that an increasing number of people are turning to AI through Chat GPT for an advice solution. According to Broker Chooser 2.7 million people have searched the App for advice. Half of those said that they were going to act on the “advice” given.
This may be helpful, but any advice is not personalised and there are no protections if things go wrong, or the outcomes aren’t what you wanted. As you’d expect younger people are more likely to use AI. When it comes to the over 50’s only 10% are comfortable with AI when it comes to their finances.
Most of the searches of course are for simple solutions like interest rates, budgeting advice etc rather than technical advice on investments or pensions.
We already know from research that AI results are only accurate 50% of the time.
In order to achieve a bespoke holistic view of your finances you will need to see an advisor. But there is a cost to this of course. Advice business Continuum found that only 19% of people would actually use a financial advisor anyway, so AI is likely to fill the void for the other 81%.
Get more information.
If you are looking for online financial advice, then why not contact Christina today. She offers a free initial meeting to discuss your requirements and explain how our service works. You are under no obligation to use us after that if you don’t want to and we won’t pester you.
So why not call us today on 01282 614444 or e mail us enquiries@ccfps.co.uk or use our contact form online.
