The regulator urges a rise from two to five years for promoting unauthorised financial schemes.
Recently, the regulator charged individuals for promoting unauthorised forex schemes, with trials set for 2024 and 2027.
The front of the FCA office in London
The UK Financial Conduct Authority (FCA) has asked lawmakers
to introduce stricter rules for technology firms and social media influencers
who promote unauthorised financial products.
Many of these promotions relate to forex trading schemes,
which are often presented by self-described “finfluencers” on platforms such as
Instagram and TikTok. These influencers typically claim high returns and use
lifestyle content to attract followers, raising concerns about misleading or
unverified financial advice.
FCA Officials Demand Faster Action on Finfluencers
Lucy Castledine, Director of Consumer Investments, FCA, Source: LinkedIn
During a recent Treasury Select Committee session, senior
FCA officials criticised major technology companies for not doing enough to
stop the spread of illegal financial content. Steve Smart, Director of
Enforcement, and Lucy Castledine, Director of Consumer Investments, said
current efforts by tech platforms are not sufficient.
Castledine said some companies are slow to act when the FCA
flags harmful posts. “We can’t have that content popping up 12 hours later,”
she said. She added that even when accounts are removed, influencers often
return under new names. “At the moment we have to submit individual account
takedowns. The Big Tech platforms have got the technology to identify this;
they need to be proactive about it otherwise we will be in a continued
whack-a-mole.”
Pushes for Increased Sentences on Financial Crimes
The FCA also warned that finfluencers—social media figures
who discuss financial topics—are frequently involved in promoting unauthorised
investment products. Although the regulator has brought charges against some
individuals, no convictions have been recorded so far.
Under current laws, promoting unauthorised financial schemes
can lead to a prison term of up to two years. The FCA has said this is not a
strong enough penalty to deter wrongdoing. It is urging Parliament to increase
the maximum sentence to five years.
“Fundamentally this content is illegal,” Castledine told
MPs. “It is driving people into parting with their money. It is very much a
recurring theme we are seeing and it is a growing trend. We need people to sit
up and take action.”
One person also denied
giving unauthorised advice on contracts for difference (CFDs). A plea hearing
is scheduled for 26 September 2024. Two trials are set to begin on 1 February
and 15 March 2027, depending on court availability.
The UK Financial Conduct Authority (FCA) has asked lawmakers
to introduce stricter rules for technology firms and social media influencers
who promote unauthorised financial products.
Many of these promotions relate to forex trading schemes,
which are often presented by self-described “finfluencers” on platforms such as
Instagram and TikTok. These influencers typically claim high returns and use
lifestyle content to attract followers, raising concerns about misleading or
unverified financial advice.
FCA Officials Demand Faster Action on Finfluencers
Lucy Castledine, Director of Consumer Investments, FCA, Source: LinkedIn
During a recent Treasury Select Committee session, senior
FCA officials criticised major technology companies for not doing enough to
stop the spread of illegal financial content. Steve Smart, Director of
Enforcement, and Lucy Castledine, Director of Consumer Investments, said
current efforts by tech platforms are not sufficient.
Castledine said some companies are slow to act when the FCA
flags harmful posts. “We can’t have that content popping up 12 hours later,”
she said. She added that even when accounts are removed, influencers often
return under new names. “At the moment we have to submit individual account
takedowns. The Big Tech platforms have got the technology to identify this;
they need to be proactive about it otherwise we will be in a continued
whack-a-mole.”
Pushes for Increased Sentences on Financial Crimes
The FCA also warned that finfluencers—social media figures
who discuss financial topics—are frequently involved in promoting unauthorised
investment products. Although the regulator has brought charges against some
individuals, no convictions have been recorded so far.
Under current laws, promoting unauthorised financial schemes
can lead to a prison term of up to two years. The FCA has said this is not a
strong enough penalty to deter wrongdoing. It is urging Parliament to increase
the maximum sentence to five years.
“Fundamentally this content is illegal,” Castledine told
MPs. “It is driving people into parting with their money. It is very much a
recurring theme we are seeing and it is a growing trend. We need people to sit
up and take action.”
One person also denied
giving unauthorised advice on contracts for difference (CFDs). A plea hearing
is scheduled for 26 September 2024. Two trials are set to begin on 1 February
and 15 March 2027, depending on court availability.
Prop Firms and Brokers Form a Perfect Synergy: One Offers Access, the Other Capital
Executive Interview | Charlotte Bullock | Chief Product Officer, Bank of London | FMLS:25
Executive Interview | Charlotte Bullock | Chief Product Officer, Bank of London | FMLS:25
In this interview, we sat down with Charlotte Bullock, Head of Product at The Bank of London, previously at SAP and now shaping product at one of the sector’s most ambitious new banking players.
Charlotte reflects on the Summit so far and talks about the culture inside fintech banks today. We look at the pressures that come with scaling, and how firms can hold onto the nimble approach that made them stand out early on.
We also cover the state of payments ahead of her appearance on the payments roundtable: the blockages financial firms face, the areas that still need fixing, and what a realistic solution looks like in 2026.
In this interview, we sat down with Charlotte Bullock, Head of Product at The Bank of London, previously at SAP and now shaping product at one of the sector’s most ambitious new banking players.
Charlotte reflects on the Summit so far and talks about the culture inside fintech banks today. We look at the pressures that come with scaling, and how firms can hold onto the nimble approach that made them stand out early on.
We also cover the state of payments ahead of her appearance on the payments roundtable: the blockages financial firms face, the areas that still need fixing, and what a realistic solution looks like in 2026.
In this conversation, we sit down with Drew Niv, CSO at ATFX Connect and one of the most influential figures in modern FX.
We speak about market structure, the institutional view on liquidity, and the sharp rise of prop trading, a sector Drew has been commenting on in recent months. Drew explains why he once dismissed prop trading, why his view changed, and what he now thinks the model means for brokers, clients and risk managers.
We explore subscription-fee dependency, the high reneging rate, and the long-term challenge: how brokers can build a more stable and honest version of the model. Drew also talks about the traffic advantage standalone prop firms have built and why brokers may still win in the long run if they take the right approach.
In this conversation, we sit down with Drew Niv, CSO at ATFX Connect and one of the most influential figures in modern FX.
We speak about market structure, the institutional view on liquidity, and the sharp rise of prop trading, a sector Drew has been commenting on in recent months. Drew explains why he once dismissed prop trading, why his view changed, and what he now thinks the model means for brokers, clients and risk managers.
We explore subscription-fee dependency, the high reneging rate, and the long-term challenge: how brokers can build a more stable and honest version of the model. Drew also talks about the traffic advantage standalone prop firms have built and why brokers may still win in the long run if they take the right approach.
Executive Interview | Remonda Z. Kirketerp Møller| CEO & Founder Muinmos | FMLS:25
Executive Interview | Remonda Z. Kirketerp Møller| CEO & Founder Muinmos | FMLS:25
In this interview, Remonda Z. Kirketerp Møller, founder of Muinmos, breaks down the state of AI in regtech and what responsible adoption really looks like for brokers. We talk about rising fragmentation, the pressures around compliance accuracy, and why most firms are still in the early stages of AI maturity.
Ramanda also shares insights on regulator sandboxes, shifting expectations around accountability, and the current reality of MiCA licensing and passporting in Europe.
A concise look at where compliance, onboarding, and AI-driven processes are heading next.
In this interview, Remonda Z. Kirketerp Møller, founder of Muinmos, breaks down the state of AI in regtech and what responsible adoption really looks like for brokers. We talk about rising fragmentation, the pressures around compliance accuracy, and why most firms are still in the early stages of AI maturity.
Ramanda also shares insights on regulator sandboxes, shifting expectations around accountability, and the current reality of MiCA licensing and passporting in Europe.
A concise look at where compliance, onboarding, and AI-driven processes are heading next.
In this conversation, we speak with Aydin Bonabi, CEO and co-founder of Surveill, a firm focused on fraud detection and AI-driven compliance tools for financial institutions.
We start with Aydin’s view of the Summit and the challenges brokers face as fraud tactics grow more complex. He explains how firms can stay ahead through real-time signals, data patterns, and early-stage detection.
We also talk about AI training and why compliance teams often struggle to keep models accurate, fair, and aligned with regulatory expectations. Aydin breaks down what “good” AI training looks like inside a financial environment, including the importance of clean data, domain expertise, and human oversight.
He closes with a clear message: fraud is scaling, and so must the tools that stop it.
In this conversation, we speak with Aydin Bonabi, CEO and co-founder of Surveill, a firm focused on fraud detection and AI-driven compliance tools for financial institutions.
We start with Aydin’s view of the Summit and the challenges brokers face as fraud tactics grow more complex. He explains how firms can stay ahead through real-time signals, data patterns, and early-stage detection.
We also talk about AI training and why compliance teams often struggle to keep models accurate, fair, and aligned with regulatory expectations. Aydin breaks down what “good” AI training looks like inside a financial environment, including the importance of clean data, domain expertise, and human oversight.
He closes with a clear message: fraud is scaling, and so must the tools that stop it.
Exness expands its presence in Africa: Inside our interview with Paul Margarites in Cape Town
Exness expands its presence in Africa: Inside our interview with Paul Margarites in Cape Town
Finance Magnates met with Paul Margarites, Exness regional commercial director for Sub-Saharan Africa, during a visit to the firm’s office opening in Cape Town. In this talk, led by Andrea Badiola Mateos, Co-CEO at Finance Magnates, Paul shares views on the South African trading space, local user behavior, mobile trends, regulation, team growth, and how Exness plans to grow in more markets across the region. @Exness
Read the article at: https://www.financemagnates.com/thought-leadership/exness-expands-its-presence-in-africa-inside-our-interview-with-paul-margarites/
#exness #financemagnates #exnesstrading #CFDtrading #tradeonline #africanews #capetown
Finance Magnates met with Paul Margarites, Exness regional commercial director for Sub-Saharan Africa, during a visit to the firm’s office opening in Cape Town. In this talk, led by Andrea Badiola Mateos, Co-CEO at Finance Magnates, Paul shares views on the South African trading space, local user behavior, mobile trends, regulation, team growth, and how Exness plans to grow in more markets across the region. @Exness
Read the article at: https://www.financemagnates.com/thought-leadership/exness-expands-its-presence-in-africa-inside-our-interview-with-paul-margarites/
#exness #financemagnates #exnesstrading #CFDtrading #tradeonline #africanews #capetown
