Nine so-called ‘finfluencers’ have been charged in relation to promoting an unauthorised foreign exchange trading scheme on social media, the Financial Conduct Authority (FCA) announced today.
The FCA alleges that, between May 2018 and April 2021, ‘finfluencers‘ Emmanuel Nwanze and Holly Thompson used an Instagram account, @holly_fxtrends, to promote the buying and selling of contracts for difference, or CFDs, when they were not authorised to do so.
Nwanze has been charged with one count of running an unauthorised investment scheme and one count of issuing unauthorised financial promotions.
The FCA also alleges that Nwanze paid Biggs Chris, Jamie Clayton, Lauren Goodger, Rebecca Gormley, Yazmin Oukhellou, Scott Timlin and Eva Zapico to promote the @holly_fxtrends Instagram account to their millions of followers.
Thompson and the seven others each face one count of issuing unauthorised communications of financial promotions.
The defendants are set to appear at Westminster Magistrates Court on June 13.
The charges come after the City watchdog has issued multiple warnings that it will take action against financial influencers, known as finfluencers, illegally touting financial products on social media.
In March, the authority issued new guidance detailing how finfluencers and companies should be properly including the risks of the products they’re promoting and not exaggerate potential gains.