In April 2026, the Financial Conduct Authority arrested three individuals as part of a wider investigation into unlawful financial promotions on social media. The arrests were a visible piece of a much larger regulatory push against unauthorised financial advice and misleading investment promotions on TikTok, Instagram, YouTube, and X. For everyday consumers, this is a useful reminder that not every “investment opportunity” you see on social media is what it claims to be, and that there are specific signals that should make you stop and check before parting with any money.
Here is what the FCA is actually targeting, what the law says about financial promotions, the warning signs to watch for, and how to verify whether someone offering financial advice or investment opportunities is who they say they are.
The short version
- The FCA arrested three individuals in April 2026 in connection with unauthorised financial promotions on social media. This was part of a broader programme against “finfluencer” content that may amount to regulated activity without authorisation.
- Under the Financial Services and Markets Act 2000, communicating an “invitation or inducement to engage in investment activity” is a regulated activity that requires FCA authorisation, unless an exemption applies.
- Social media posts about investments, trading, crypto, FX, contracts for difference (CFDs), share tips, or specific high-risk products almost always count as financial promotions.
- Promotion of high-risk investments to ordinary consumers is restricted under additional rules from January 2024 (the “marketing restrictions” regime).
- If you see investment content on social media, the practical test is: is the person communicating it FCA-authorised, and have they followed the financial-promotion rules?
- You can check FCA authorisation on the FCA register at register.fca.org.uk.
What is a “financial promotion” in law
The term “financial promotion” is defined in section 21 of the Financial Services and Markets Act 2000 (FSMA). It is broad: a communication that is “an invitation or inducement to engage in investment activity” counts as a financial promotion, regardless of the medium (TV advert, newspaper column, Instagram post, podcast, TikTok video, group chat).
The key legal rule is: a financial promotion can only be communicated by, or with the approval of, an FCA-authorised person. Communicating an unauthorised financial promotion is a criminal offence under section 25 of FSMA, punishable by up to two years in prison and/or an unlimited fine.
That sounds technical, but it has a clear practical implication: if someone on social media is telling you to buy a particular investment, that is a regulated activity. Either they are authorised (or operating under authorised approval), or they may be committing a criminal offence.
What counts as “investment activity”
The legislation lists a wide range of activities that count as “investment activity”:
- Buying, selling, or subscribing for shares or bonds.
- Trading derivatives, including CFDs, FX, and options.
- Buying or selling units in collective investment schemes (funds, OEICs, investment trusts).
- Participating in pension schemes.
- Entering into life insurance contracts.
- Buying or selling certain crypto-asset products that the FCA regulates (which has been expanding).
- Various structured products and high-risk speculative investments.
What is generally NOT a financial promotion under the law:
- Genuine educational content about how investing works in general terms, without recommending specific products or transactions.
- Personal opinion content that is clearly framed as opinion and does not constitute an invitation to act.
- News reporting on financial markets.
- Some informational content under the “journalism” or “factual” exemptions, although these are narrower than they sound.
The line between “educational content” and “financial promotion” is not always obvious. The FCA looks at the substance of the communication, not the disclaimer. “This is not financial advice” at the end of a post does not magically convert a promotion into education.
The “high-risk investment marketing restrictions”
On top of the basic financial-promotion rules, since January 2024 the FCA has additional restrictions on how high-risk investments can be marketed to ordinary retail consumers. The restrictions apply to:
- Restricted Mass Market Investments (RMMIs): things like non-mainstream pooled investments, peer-to-peer lending, and some crypto products.
- Non-Mass Market Investments (NMMIs): essentially the high-risk end including unregulated collective investment schemes.
The restrictions require:
- A standard form of risk warning (“Don’t invest unless you’re prepared to lose all the money you invest. This is a high-risk investment…”) in a prescribed format.
- A 24-hour cooling-off period before a first investment.
- An appropriateness assessment from the firm offering the investment.
- A statement from the consumer that they accept the risks.
The point of the 2024 rules was to prevent the kind of high-risk promotions that had become common on social media (crypto schemes, “passive income” investment hooks, get-rich-from-trading content) from operating without the standard consumer-protection layers that apply elsewhere in financial services.
The April 2026 enforcement push
The FCA’s April 2026 arrests were three individuals connected with unauthorised financial promotions on social media. The FCA does not always publish details of ongoing investigations, so the specifics of these cases are limited. The broader pattern is what matters for consumers:
- The FCA has dedicated resources to “scam and unauthorised promotions” enforcement.
- Social media platforms have been cooperating, removing flagged content and (where possible) the accounts behind it.
- The FCA’s warning list (firms that the FCA has identified as operating without authorisation) is updated regularly.
- Cases are referred to the Crown Prosecution Service where criminal prosecution is appropriate.
From a consumer perspective, the practical takeaway is not “trust the system to catch everyone”. By the time an unauthorised promotion is shut down, money has often already been lost. The takeaway is to develop your own scepticism filter and check authorisation yourself.
The warning signs to watch for
Promotions that turn out to break the rules tend to share certain features. None of these alone proves a promotion is unlawful, but together they should make you stop.
1. Specific investment recommendations without showing FCA authorisation
“You should buy this stock.” “Sign up for this trading platform.” “Put your money into this fund.” Any specific recommendation to engage in investment activity is a financial promotion. The communicator should be FCA-authorised, or the promotion should have been approved by an authorised person. Look for the FCA reference number, often shown in small print or in the channel’s bio.
2. Promises of guaranteed returns or specific percentage gains
“Guaranteed 15% return per month.” “Make £500 a day trading.” “Risk-free passive income.” These are red flags. No legitimate investment offers guaranteed returns at the levels often promoted by social-media schemes. The FCA’s standard risk warning (“you may not get back the amount originally invested”) is not optional.
3. Pressure tactics
“Limited time offer.” “Only 10 spots left.” “Doors close at midnight.” “If you miss this, you’ll regret it forever.” Time pressure is a classic manipulation tactic. Regulated investments do not need to manufacture urgency; the consumer is supposed to be making a considered decision.
4. Lifestyle bait and “trader” personas
Content that shows luxury cars, expensive holidays, and apparently effortless wealth is a recurring pattern in unlawful promotions. The implicit message is “follow my method and you will live like this too.” The reality is almost always rented props, exaggerated outcomes, and an income stream that comes from selling courses, signal services, or referral commissions, not from trading itself.
5. Crypto, FX, and “passive income” hooks
Many social-media financial promotions cluster around crypto, foreign exchange trading, and “passive income” through various schemes. These are not inherently illegal, but they are heavily regulated, and the level of FCA authorisation required is real. Many promoters operate without it.
6. Offshore platforms and “regulated by [unfamiliar body]”
Some unauthorised promotions try to claim regulation by an unfamiliar overseas regulator. UK consumers are protected by UK rules; an offshore regulator does not substitute for FCA authorisation if the firm is targeting UK retail customers.
7. Pressure to move money out of regulated accounts
Promotions that encourage you to withdraw money from a pension, ISA, or bank account and put it into the promoter’s product are particularly high-risk. Legitimate financial advice is given by FCA-authorised advisers who go through formal regulated processes; it does not arrive as a DM from a stranger.
Why “Approved by [Firm Name]” is not a free pass
The approver chain is a regulatory feature, not a regulatory guarantee. An FCA-authorised firm can approve a promotion communicated by an unauthorised party, and that approval is what makes the promotion lawful. Seeing “Approved by [Firm Name] on [date]” on a social-media promotion is a good sign, and the approving firm can be checked on the FCA register the same way as any other authorised firm.
On 27 May 2026 the FCA published the findings of a review of 10 authorised firms approving promotions for unauthorised businesses in the buy-now-pay-later, crowdfunding, and corporate-finance sectors. The review found shortcomings serious enough that one firm had to run a remediation exercise and some websites were blocked to retail customers. The named issues included approving adverts with unsubstantiated claims, allowing retail investors to see promotions intended for professional clients, and relying on third-party templates instead of doing the firm’s own checks. Lucy Castledine, the FCA’s director of consumer investments, put it plainly: “When approvers fail in their responsibilities, people can be misled into harmful financial decisions.”
The practical implication for consumers: the approver label is a useful filter, but it is not a substitute for the seven warning signs above. If the underlying offer triggers any of those signs, the presence of an approver name does not change the answer.
How to check FCA authorisation
The Financial Services Register at register.fca.org.uk is the official source. You can search by:
- Firm name.
- Individual name (for advisers).
- FCA reference number.
The register tells you whether a firm or individual is authorised, what activities they are authorised for, their permissions, and (if there have been any) any enforcement actions taken against them. A genuine FCA-authorised firm will display its FCA reference number prominently and will not object to you checking.
The FCA also publishes a warning list of firms that have been identified as operating without authorisation but targeting UK consumers. If a firm appears on the warning list, the FCA is recommending you do not engage with them. The list is updated frequently.
What to do if you encounter unlawful promotions
- Do not engage. Do not click links from suspicious financial promotions, do not respond to DMs offering investment opportunities, do not give personal information to unverified parties.
- Report to the FCA. Use the FCA’s “Report a scam” form on its website. Reports are taken seriously and help build evidence for enforcement.
- Report to the social media platform. Each major platform has reporting flows for scam and misleading financial content. Reports help platforms remove the content faster.
- Report to Action Fraud (the UK’s national fraud and cyber-crime reporting centre) at actionfraud.police.uk.
- If you have lost money, report it to your bank or card provider immediately. If the transaction was a card payment or push payment, there may be limited recovery routes.
The role of financial advice (the regulated kind)
Genuine, regulated financial advice exists. It is delivered by FCA-authorised firms and individuals through a defined process that includes:
- An initial fact-find about your financial situation.
- An assessment of your goals, risk tolerance, and capacity for loss.
- A written suitability report justifying any recommendation.
- A clear fee structure (either a flat fee or a percentage-based fee).
- Ongoing review if you have a continuing relationship.
This process is slower and less glamorous than a social media “trading guru” telling you about the next big move, but it comes with consumer-protection layers that the social media route does not.
You can find an FCA-authorised adviser through:
- The FCA register, which lists all authorised individuals.
- MoneyHelper, which has a directory of adviser firms.
- Personal recommendations from people you know, verified against the FCA register.
FAQ
Is all financial content on social media bad?
No. There is a lot of legitimate, educational financial content from authorised firms, journalists, academics, and well-informed enthusiasts. The issue is content that crosses from education into specific recommendations or promotions without authorisation. The skill is telling the difference; the seven warning signs above are a starting point.
What if a financial promotion has an authorised person “approving” it?
Some financial promotions are communicated by unauthorised persons but “approved” by an FCA-authorised firm, which is permitted under the rules. The approval should be visible (usually a statement like “Approved by [Firm Name] on [date]”) and you can verify the approving firm on the FCA register. Approval makes the promotion lawful; it does not, by itself, mean the underlying investment is suitable for you.
I think I have been the victim of a scam. What now?
Contact your bank immediately if money has moved. Report to Action Fraud and to the FCA. Document everything (screenshots, message logs, account numbers). The faster you act, the better the chances of recovery, though full recovery is unfortunately not always possible. The FCA also signposts to the Take Five fraud awareness campaign for general guidance.
Do US-based finfluencers fall under FCA rules when their content reaches UK consumers?
The FCA can take action against communications that have a clear UK audience, even if the communicator is overseas. In practice enforcement against overseas individuals is harder, but social media platforms have increasingly cooperated with the FCA on takedowns. UK consumers should treat content from any jurisdiction with the same scepticism filter: check authorisation, watch for warning signs, do not engage with unverified promotion.
What about “trading signal” subscription services?
Subscription services that send trading signals or buy/sell recommendations are providing investment advice or making financial promotions. If they target UK consumers without FCA authorisation, that may be unlawful regardless of how the service is described. Check the firm on the FCA register; if they are not there, treat with extreme caution.
Is following an investing course or YouTube channel illegal?
Following the content is not illegal. The question is whether the content itself is lawful. Educational content is fine. Specific investment promotions and recommendations cross into regulated territory. If a course or channel is selling specific signals, products, or recommendations, that is the threshold to start checking authorisation.
Where to go from here
- FCA Register: register.fca.org.uk
- FCA Warning List: fca.org.uk/scamsmart/warning-list
- Action Fraud (UK fraud reporting): actionfraud.police.uk
- FCA ScamSmart: fca.org.uk/scamsmart
- MoneyHelper: moneyhelper.org.uk
- Related Savvy Investor guides:
This article explains the UK financial-promotion regime and the warning signs of unlawful promotions as of 13 May 2026. It is general information, not personal financial or legal advice. If you have been the victim of a scam, contact your bank, Action Fraud, and the FCA immediately.
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