Financial Planners call for Tik Tok regulation

Financial-Planner-regulation
Financial-Planner-regulation

Article by Phil

I don’t know about you but I’m not a big Tik Tok user, but I do think I know what it is! Unsurprisingly, because of its popularity with young people, it has also become overrun by so called “influencers”. These are people with large numbers of followers who promote products and services to their followers in return for financial payments.

 

Crypto currency is a particular area of concern for regulators on Tik Tok.

 

However, there are now calls from Financial Planners for regulation to be introduced in the Tik Tok mortgage market. It seems that influencers are getting involved in mortgage “advice” which is strictly regulated as it’s a financial promotion. Regulated advisers on the platform are asking the FCA to get involved to clamp down on unregulated players.

 

Who knew Tik Tok users would be interested in mortgages? But it seems so.

 

One firm Kag Financial claims to be getting 300 enquiries a month from its 18,000 Tik Tok followers. That seems like a good return, so perhaps it is no wonder that unregulated players are getting involved. After all there are still introducer fees to be had in the mortgage market.

 

The other area concerning Financial Planners for regulation is property purchases.

 

It seems that lots of influencers are boasting about how much money they have made from buying and selling property, which could be driving the mortgage enquiry numbers. You can spot the non-regulated influencers quite easily because their videos do not carry the standard risk and disclaimer notices required by the FCA. The complaint is that Tik Tok seem to be allowing these “adverts” to continue without checking their authorisation.

 

These videos have racked up over 10 million views and almost a million likes, so the issue is widespread.

 

Interestingly, some mortgage advisers do not want more regulation. They argue that the platform is good for building awareness of mortgages and financial services more widely. Including making people aware of how to spot scams.

 

Although the FCA will have its work cut out, I’d expect it to get more involved in Tik Tok going forward.

The Benefit of Independent Financial Advice Explained

Why taking personalised financial advice is a good idea, both now and in the future.

If you have any questions about Financial Planning please feel free to give us a call on 01282 614444 or drop us an e mail to enquiries@ccfps.co.uk

Awards and Accreditations

Pension Transfer Gold Standard
Investment-Planner
Financial Vulnerability Taskforce
VF 23
Vouched For 2022
Vouched For 2021
Vouched For 2020
Vouched For 2019
Vouched For 2018
Vouched For 2017
Vouched For 2016
Vouched For 2015
Vouched For 2014

The quality of service from Adele and everyone at the company was excellent, in fact the service we received was better than that.

Mr & Mrs F

Highly recommended to friends and relatives. Contacting Christina was the best thing we ever did. We wouldn’t be in the financial position that we are, without her.

Mr & Mrs L

I would like to thank you all for the advice financial advice given to myself regarding my pension, especially Adele.

Mr O