Majority of TikTok ‘Finfluencers’ Breaking FCA Rules, Analysis Finds

A new analysis has uncovered rampant non-compliance amongst popular TikTok ‘finfluencers’ (content creators that share financial advice on social media), with 68% of posts breaking Financial Conduct Authority (FCA) rules.

The findings follow three British finfluencers appearing in court after being charged with unauthorised promotion of high-risk financial products, as the FCA spearheads a crackdown on illegal financial promotions (FinProm) by social media content creators.

The analysis was conducted by leading FinProm compliance platform, Adclear, to uncover the extent of non-compliance by finfluencers, as AI and user-generated content runs rampant.

They analysed 40 of the most-viewed finfluencer TikToks in the UK this year. On average, the videos studied had 286k views and 11k likes, although individual TikToks in the sample attracted as many as 2.2 million views and 117k likes. All videos included in the sample were published under the popular finfluencer hashtag, “#financialfreedom” (4.5 million videos are listed under this hashtag in total, with a combined 23.8 billion views), and contained educational content.

Adclear’s AI-powered platform tested each video against FCA rules, and found that a staggering 68% failed to comply – with 27 of the 40 TikToks studied breaching official regulations.

Common examples of non-compliance included:

• Failure to add clear “not financial advice” disclaimers

• Failure to signpost sponsorship by brands

• Exaggerated and unsubstantiated claims about potential ROI

• Failure to warn users about risks and potential capital loss

• High-risk products promoted without proper disclosures included forex trading and crypto

The findings come as separate research by Barclays shows that almost a quarter (24%) of Brits, and almost half of Gen Z (48%), feel under pressure to act quickly on advice from high-profile social media content creators. The high street bank also found more than two-fifths (42%) of those who have acted on finfluencer investment advice lost money as a result.

Joe Jordan, Co-founder of Adclear, comments: “Finfluencers can ship authentic content quickly for their young and growing audiences. For brands looking for new ways to create content and promote products, collaborations with these content creators can therefore be appealing. But they should proceed with caution. Whether they know it or not, top finfluencers are routinely breaking FCA rules, and companies partnered with them share the risks of resulting fines, bans and investigations. This comes as a timely reminder: all content that brands put out – through their own channels or partners’ accounts – must be rigorously checked to ensure compliance. Effective and efficient compliance processes go hand-in-hand with innovative and agile marketing strategies.”