image source, TikTok
Influencers must be signed off by the city regulator in a campaign to warn people of the pitfalls of investing in high risk.
Some celebrities have been criticized for their role in promoting trading apps that 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.
This is part of a more strategy wide for s 'ensure investors are treated well.
"Investors have never had more freedom. Technology has democratized the market, 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 this freedom comes with risks. We want to give consumers more confidence to invest and help them do it safely, understanding the level of risk. "
In strategy , the FCA reiterated its warning that some people invested money for the first time during the pandemic in products that pose too high a risk for their financial situation.
He cautioned they get involved in cryptocurrencies and foreign currencies for the sake of investing, rather than for long-term savings goals.
image source, image caption The authorities have taken action against a message from Lauren Goodger
Along with this, there were concerns that some celebrities had endorsed certain products without clearly highlighting their own gain.
In August, an Instagram post by TV star Lauren Goodger has been banned because she did not clearly mark it as one.
A survey by the investment platform Interactive Investor has revealed that 45% of young investors aged 18-29 said their very first investment was in cryptocurrency, while many funded this through a cocktail of credit cards, student loans, and other loans .
Accordingly, 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 lack it.
This could potentially mean 1.7 million people, each with more £ 10,000 from saving cash to investing ents.
Laura Suter, from investment firm AJ Bell, adstated: "For many of these people investing is a logical path, as they don 't need the security of money or immediate access to their money, but it is often a work on the to-do list that 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 role supervision.