The Monetary Conduct Authority (FCA) says it’s turning into ‘more and more involved’ concerning the unfold of unregulated monetary recommendation on social media.
The regulator’s director of shopper investments Lucy Castledine made the feedback at PIMFA’s Compliance Convention yesterday.
She warned extra shoppers than ever had been susceptible to “taking recommendation from unregulated sources, similar to social media, investing in property with the next threat than their tolerance and making them extra susceptible to scams”.
Her warning got here two days after the On-line Security Invoice handed its ultimate studying within the Home of Lords.
“We wish to see a market the place shoppers can solely entry services and products that meet their wants and meaning ensuring there’s all kinds of assist out there,” she mentioned.
Castledine additionally informed corporations the FCA will maintain them answerable for the publication of unlawful monetary promotion of crypto-assets.
She added this was of ‘paramount concern’ and offered a big threat to shoppers.
From 8 October, the FCA will change into the primary regulator on the planet to manage the promotion of crypto-assets.
Social media corporations, different middleman corporations and app shops performed a big function within the promotion of crypto-assets within the UK, Castledine added.