Taking social care: Financial advice in the age of the finfluencer
Taking social care: Financial advice in the age of the finfluencer
Whether you’re looking to invest in equities or planning how to fund your retirement, whatever you decide to do with your money is, ultimately, your choice.
And in today’s world, if you’re looking for help with those decisions, you have access to more sources of information, guidance and opinion than ever before.
A major contributor to this groundswell of noise has been the increased volume of messages coming from social media and digital platforms, including Instagram, TikTok and YouTube. Here, financial influencers, or ‘finfluencers’, are attracting growing followings by delivering distilled ‘advice’ on money matters, often directly into the palm of our hand.
For those seeking support with their finances, it is easy to see why accessing such snackable tips and ‘wealth hacks’ might hold appeal. Indeed, according to one survey, within the past two years an estimated 40% of UK investors turned to social media for information regarding financial decisions.
But it is also important to understand the risks involved. While some content might be entirely valid, it is an environment that is unregulated and there is potential for it to be produced by people who are unverified and unqualified.
In light of this situation, the Financial Conduct Authority (FCA) has taken steps to address concerns. In March 2024, the regulator published finalised guidance clarifying its expectations around communicating financial promotions on social media, underlining their potential to cause “significant consumer harm”.
Cracking down
The guidance applies to both firms and unauthorised persons, such as social media influencers, explaining when their communications might fall within its regulatory remit.
More recently, in June 2025 the FCA led a co-ordinated global week of action with regulators in Australia, Canada, Hong Kong, Italy, and the United Arab Emirates (UAE) to crack down on illegal finfluencer promotions. This led to arrests and criminal proceedings, while also triggering more than 650 takedown requests on social media and more than 50 websites operated by unauthorised finfluencers.
As the FCA points out, many finfluencers are acting legitimately and not breaking any laws. There are rogue elements, however, who are either acting irresponsibly or, at worst, fraudulently.
The City of London Police - the National Lead Force for fraud and economic crime - has reported that 36% of all investment fraud reports are linked to a social media platform, contributing to the total of £649m lost to investment fraud last year. Separate research has found that 74% of those who followed financial guidance from social media lost money or experienced an undesired outcome.
Verifying authenticity
Moneyhelper, the government-backed source of guidance on financial matters, has created a helpful checklist of actions designed to help verify the authenticity of information providers.
It recommends:
Looking at the FCA Firm Checker and the Financial Services Register to see if a person or firm is authorised to give advice
Checking the FCA Warning List before investing
Visiting the FCA’s InvestSmart site, which includes its own checklist tool, to learn more about investments and risk
In this context, there are clear and compelling benefits to seeking out professional, regulated advice from respected financial firms who are guided by a responsibility to support individuals with personalised, risk-aware planning services.
Regulated firms are obliged to implement a number of measures designed to support the provision of professional advice. These include establishing robust internal governance structures related to areas such as complaints, culture, conduct and communications. In addition, activities are undertaken with regulatory oversight from the FCA, which enforces measures of redress for non-compliance.
Professional financial advice
Perhaps surprisingly, the proportion of people taking advantage of this valuable service is relatively low across the country as a whole, with only 8.6% of those surveyed in 2024 having sought advice on investments, pensions or retirement planning in the previous year.
And with the majority (61%) of those with more than £10,000 in investible assets holding at least three-quarters in cash and not investments, it seems there are many who would benefit from access to professional financial support.
Those that do are highly likely not to regret making the decision to engage, with an estimated 96% of advised clients reporting net satisfaction – and 79% reporting being extremely or very satisfied.
Forthcoming changes to the sector are likely to help address the current ‘advice gap’, with proposed measures aimed at providing consumers with improved access while maintaining essential levels of professional rigour. The FCA has labelled these as “once-in-a-generation reforms”.
Targeted support
One such proposal is the concept of ‘targeted support’, a new type of help that allows authorised firms to use limited information to offer appropriate suggestions to consumers who share similar high-level characteristics.
Having consulted widely on the measures, a final policy statement is expected in December 2025, prior to finalisation and implementation of any new rules.
But even then, consumers will continue to be exposed to alternative, unregulated sources of financial information, particularly on social media, with illegal promotions likely to remain a feature of this changing landscape.
For individuals seeking to optimise decisions about what to do with their wealth, this underlines the need for continued vigilance. There is no shortage of information available in today’s world, but it is only by verifying the credentials of those who provide it that you can be assured you are accessing genuine financial advice you can trust.
The information contained within this communication does not constitute financial advice and is provided for general information purposes only. No warranty, whether express or implied is given in relation to such information. Vintage Wealth Management or any of its associated representatives shall not be liable for any technical, editorial, typographical or other errors or omissions within the content of this communication.