From loud budgeting to girl math, there’s financial advice aplenty on social media—the problem is, not all of it is reliable. So the Financial Conduct Authority has stepped in with fresh guidance for those who dish out financial tips online.
Now influencers can face as long as two years in prison, an unlimited fine, or both if they don’t provide proper risk warnings when advising consumers on financial products.
The U.K. watchdog warned in a 47-page report that this guidance extends to memes, gaming streams, and reels.
“Any marketing for financial products must be fair, clear, and not misleading so consumers can invest, save, or borrow with confidence,” Lucy Castledine, director of consumer investments at the FCA, said in a statement.
“Promotions aren’t just about the likes, they’re about the law,” Castledine warned. “We will take action against those touting financial products illegally.”
The regulator cautioned that the new rules even apply to communications that originate outside the U.K. if they are capable of having an effect in the country.
Gen Z relying on social media for financial advice
The toughened stance comes as young people shun traditional financial advisors and banks in favor of social media.
TikTok—the birthplace of girl math, loud budgeting, and “my payday routine” videos—is arguably the go-to platform for money hacks.
The hashtag #FinTok has a staggering 4.8 billion views on the site as more than a third of Gen Zers rely on influencers as their main source of financial information, according to research by Intuit Credit Karma.
In contrast, less than a tenth said they would head to a financial services provider for similar help.
Another report from the CFA Institute found that Gen Zers are more likely than any other generation to engage with financial content on TikTok, YouTube, and Instagram.
But while regulators typically require…
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