image source, TikTok
Influencers must be signed by the regulator the city 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 have proven to be popular among young people attracted toinvestment.
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 larger strategy to make sure 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 ever before, "said Sarah Pritchard, CFA executive director of markets.
" But with that freedom comes its We want to give consumers greater confidence to invest and help them do so safely, understanding the level of risk. "
In the 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 Advertising authorities took action against a post from Lauren Goodger
Along with this, there were 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 for not having it clairement marked 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 crypto change, while many were funding this through a cocktail of credit cards, student loans, and other loans.
As a result, the FCA is planning to launch a campaign to help people take 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 ", says the strategy.
The FCA also points out that around 8.6 million people currently hold more than £ 10,000 '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 of £ 10,000 from saving cash to investing ents.
Laura Suter, from investment firm AJ Bell, said: "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 to-do list job that people fail to do so. "
Liz Field, of the Personal Investment Management and Financial Advice Association, said the FCA should have been more ambitious in its oversight role.