Agencies, brands and creators operating in the fast-growing influencer economy are facing increased regulatory scrutiny after the Financial Conduct Authority (FCA) dramatically stepped up enforcement against so-called ‘finfluencers’.
New analysis based on Freedom of Information data obtained from the FCA found enforcement action against financial influencers rose from just one case in 2023 to 74 in 2025 – an increase of more than 7,300% as regulators crack down on misleading financial promotions across social media.
The findings come as the FCA intensifies its international campaign against illegal online financial promotions, recently announcing three arrests and 650 requests for social media platforms to remove content.
While the research focuses on financial influencers, one PR agency director believes the regulator’s tougher stance reflects a wider shift towards greater accountability across the creator economy.
Nathan Lane, director of Leeds-based Campfire PR, said: “Trust is what makes influencer marketing work. If consumers don’t trust the creator, they won’t trust the brand behind them, and the whole ecosystem breaks down. After years of seeing everything from streamers promoting forex and crypto schemes to influencers failing to disclose paid partnerships, it was inevitable that regulation would catch up.
“The FCA’s tougher stance isn’t about making influencer marketing harder; it’s about protecting the credibility of the industry and the consumers it serves. The agencies and brands that will benefit are those that build compliance into campaigns from the start, choosing creators carefully, carrying out proper checks and being transparent about commercial relationships. In the long run, trust is a far greater competitive advantage than chasing reach alone.”
The research, carried out by online broker comparison platform BrokerChooser, also found that 42% of Britons who have acted on investment advice shared on social media say they have lost money.
According to the FOI data, the FCA carried out 112 enforcement actions against financial influencers between 2020 and 2025. Activity remained relatively limited until 2024 before accelerating sharply over the past two years.
In 2025 alone, the regulator issued 50 warning alerts, conducted 11 interviews under caution, sent seven cease-and-desist letters, authorised three criminal actions and made three arrests.
BrokerChooser said the relatively low number of criminal prosecutions demonstrates the challenge regulators face policing creator content, with many financial influencers presenting promotional material as educational content or personal experience rather than regulated financial advice.
Adam Nasli, Head Broker Analyst at BrokerChooser, said: “A practical rule of thumb for retail investors online is this: if an investment opportunity or product cannot be accessed through a well-regulated online broker supervised by authorities such as the FCA, the SEC or major EU regulators, investors should approach it with extreme caution – or avoid it altogether. Regulation does not eliminate market risk or even the risk of fraud, but it significantly reduces the likelihood of bad actors holding on to traders’ money and the emergence of misleading structures and uneven playing fields.
“The same principle applies to new platforms and emerging technologies such as social trading and artificial intelligence. Copy trading on platforms like eToro works not because it promises outsized returns, but because it enforces transparency: investors can assess real-money performance, risk scores, and historical drawdowns. Following traders with at least three – and preferably five – years of track record offers no return guarantees, but it materially improves the safety framework around the decision.
“AI-driven tools can also play a meaningful role by supporting research and decision-making, potentially reducing reliance on traditional advisors or wealth managers. However, using AI in isolation – for portfolio construction, market timing, or asset allocation – carries significant risks and cannot be considered prudent financial behaviour.”
BrokerChooser’s previous analysis of 100 TikTok trading videos also found that 80% contained potentially misleading information, while only 6% encouraged viewers to carry out their own research before investing.
The company said much of the problematic content relied on displays of wealth and promises of quick, low-risk returns designed to trigger fear of missing out and encourage impulsive financial decisions.
Figures obtained from regulators in the UK, Canada, Australia, France and the UAE also showed Canadian authorities carried out 277 enforcement actions over the same period, compared with 112 by the FCA.
