The Eastern Magistrates’ Court in Hong Kong today (Friday) handed the first custodial sentence against a finfluencer, Chau Pak Yin, also known as Chau Kin Hei, for providing unlicensed investment advice through a paid Telegram chat group. The criminal prosecution was brought by the Securities and Futures Commission.

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Regulators have increasingly warned about unlicensed financial promoters. Last week, the UK’s Financial Conduct Authority cautioned that some “finfluencers” promote offshore regulated firms and unrealistic returns, noting one case in which more than 90,000 investors lost about £75 million.

Hong Kong Finfluencer Jailed for Telegram Advice

Chau received a six-week prison sentence and was ordered to pay the SFC’s investigation costs. The court was told that between mid-April and mid-May 2021, he operated a paid Telegram group that admitted members of the public on a subscription basis.

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During that time, Chau shared commentaries, recommendations, and target prices on various securities and answered questions from paid subscribers about the performance of Nasdaq-listed stocks. He charged US$200 per month, earning US$5,580 in total.

Regulator Targets Social Media Investment Advice

The SFC’s Executive Director of Enforcement, Michael Duignan, said the regulator “will have no hesitation in holding finfluencers accountable when their provision of investment-related content and advice on social media and online platforms constitute regulatory activities for which they should have been licensed.”

He added that unlicensed finfluencers may not meet “the SFC’s required standards of conduct and accountability,” potentially exposing investors to “significant risks and harm.”

Chau was remanded in custody after his bail application was denied pending his intended appeal against the conviction and sentence.

UK, UAE Regulators Target Rogue Finfluencers

In September, the FCA criminally charged three finfluencers for promoting high-risk CFDs on social media without authorisation. They pleaded not guilty and will appear in court in October 2025.

The FCA noted CFDs are complex leveraged products, often resulting in losses for retail investors. This follows a broader crackdown on “rogue finfluencers,” including cease-and-desist letters, warning alerts, and interviews, reflecting increasing regulatory scrutiny of social media-based investment promotions.

Meanwhile, the UAE’s Securities and Commodities Authority has become the first regulator to require a licence for individuals producing financial content online, covering investment advice, market commentary, or financial promotions through digital channels.