image source, TikTok
Influencers must be signed by the city regulator in a campaign to warn people of the pitfalls of high-risk investments.
Some celebrities have been criticized for their role in promoting trading apps that are have proven popular among young people attracted to investing.
The Financial Conduct Authority (FCA) is keen to reach out to these risk takers as part of a planned £ 11million awareness campaign .
Thisis part of a larger strategy to ensure investors are treated well.
"Investors have never had more freedom. Technology has democratized the market, from new products have become available and people have better access to their savings than before, "said Sarah Pritchard, executive director of markets at FCA.
" But that freedom comes with risks . We want to give consumers greater confidence to invest and help them do so safely, understanding the level of risk. "
In strategy , the FCA reiterated its warning that some people have invested money for the first time during the pandemic in products that pose too high risks for their financial situation.
He warned they get involved in cryptocurrencies and foreign currencies because of the fun of 'invest, rather than for long-term savings goals.
image source, caption of the image Advertising authorities have taken action against a post by Lauren Goodger
Along with This, there have been concerns that some celebrities have endorsed certain products without clearly highlighting their own gain.
In August, an Instagram post by TV star Lauren Goodger was banned because 'it has not clearly marked it as one.
A survey by investment platform Interactive Investor found that 45% of young investors aged 18-29 said their very first investment was in cryptocurrency, while many funded this through a card cocktails credit, student loans and other loans.
As a result, the FCA is planning to launch a campaign to help people make informed decisions.
" We plan to use a range of channels to reach our audience, including partnerships with influencers, social media, online videos, paid Google ads and more, "the strategy states.
The FCA also points out that nearly 8.6 million people currently hold more than £ 10,000 in assets to invest in cash.
In a major boost for the investment industry, over the next five years the regulator aims to reduce by a fifth the number of consumers who could benefit from investment income but who lack it .
This could potentially mean 1.7 million people, each with over £ 10,000, moving from saving cash to investing.nt ents.
Laura Suter, from investment firm AJ Bell, said: "For many of these people investing is a logical path because they don 't need the money. security of money or immediate access to their money, but it's often a to-do list job people fail to do. "
Liz Field , of the Personal Investment Management and Financial Advice Association, said the FCA should have been more ambitious in its oversight role.