‘Finfluencers’ charged for promoting unauthorised trading scheme

Summary:

The UK Financial Conduct Authority (FCA) has brought charges against nine individuals in relation to an unauthorized foreign exchange trading scheme promoted on social media. The scheme, run by Emmanuel Nwanze, used an Instagram account with a following of 4.5 million to provide advice on buying and selling contracts for difference (CFDs) without authorization. The FCA alleges that Mr. Nwanze paid several individuals to promote the scheme to their followers, and that the scheme caused harm to consumers. The defendants face charges of unauthorized activities and promoting unauthorized financial promotions. The FCA has also published guidance on financial promotions on social media to address consumer harm and clarify its expectations for firms and influencers using social media to communicate financial promotions.