Introduction

Finfluencers have quickly become a staple on platforms like TikTok and Instagram, presenting themselves as relatable guides to wealth, trading and financial independence. For many young people, they act as modern day “financial advisors”, offering quick tips and seemingly easy pathways to success. But this influence comes at a cost.

FCA’s Enforcement Action

In June 2025, the Financial Conduct Authority (FCA) announced a coordinated global enforcement action against illegal financial promotions by so-called “finfluencers” across a range of jurisdictions. The operation has since resulted in arrests, interviews under caution, the issuing of cease-and-desist letters, and more than 650 takedown requests across major social media platforms.

Court Proceedings

Earlier this year, three finfluencers appeared before Westminster Magistrates’ Court as part of this FCA-led crackdown. Among those implicated are UK-based finfluencers Charles Hunter, Kayan Kalpiha, and Luke Desmaris. Each has been charged with one count of communicating an invitation to engage in investment activity, contrary to Section 21(1) of the Financial Services and Markets Act 2000. The FCA alleges that they used their online platforms to encourage followers to invest in foreign exchange trading through contracts for difference (CFDs). If found guilty this could result in a fine or up to two years imprisonment.

Why CFDs Are Central

CFDs lie at the centre of this case. They are high-risk derivative instruments that allow investors to speculate on the movement of asset prices without owning the underlying asset. While potentially lucrative, they are considered highly unsuitable for inexperienced retail consumers. Research indicates that around 80% of individuals who trade CFDs incur significant financial losses. In response to such risks, the FCA has imposed stringent restrictions on how CFDs and similar products can be marketed and sold.

The seriousness of the regulator’s stance has been underscored by Steve Smart, Joint Executive Director of Enforcement and Market Oversight at the FCA, who cautioned that finfluencers “must act responsibly and only promote financial products where they are authorised to do so, or face the consequences.”

Broader Industry Implications

The 2024 @holly_fxtrends case marked the FCA’s first direct action against finfluencers, demonstrating the intersection between social media influence and financial regulation. Given the regulator’s ongoing efforts to tighten compliance and its focus on reshaping how CFDs are marketed and restricted, it is reasonable to expect that both cases will result in some form of punishment. The outcomes will depend on many factors, such as how many individuals lost money as a result, and the outreach of the promotions, but the impact of these verdicts will extend beyond the individuals involved.

Pressure on Firms and Platforms

For the wider financial industry, there is likely to be renewed pressure to uphold transparency and due diligence, along with closer checks on social media accounts that give financial advice. While no links to regulated firms have been identified in these cases, the fact that individuals with large online followings are at the centre highlights a new risk that both regulators and consumers will need to keep in mind. It also shows how quickly financial promotions can spread to audiences who may not have the tools or knowledge to fully understand the risks they are being encouraged to take.

Potential Civil Claims

There is also now a real possibility that people who lost money because of these schemes could bring civil claims. Retail investors are entitled to do this, and if they do, it would open up another layer of financial and legal consequences for those charged. The criminal prosecutions may be what grabs headlines, but civil claims could prove just as damaging in the long run, especially if large numbers of people come forward or if group claims are made. This side of the story adds weight to the FCA’s warning that social media is not outside the reach of regulation, and that those who use it to promote financial products without authorisation are putting themselves at serious risk.

What Comes Next

At present, little is known about the defence strategies or legal teams representing the accused, but further hearings at Southwark Crown Court, scheduled for 8 October, are expected to bring more clarity.

What seems clear is that the FCA has shown it understands the dangers social media brings to the financial world and is ready to adjust its approach to deal with them. This should serve not only as a warning to finfluencers but also as a reminder to other industries that rely heavily on online influence. In the years to come, it is likely that more regulators will start paying closer attention to these digital spaces, recognising that platforms like TikTok and Instagram are no longer just for entertainment, but are now places where people are making important decisions about their money and their futures.