The rise of social media has transformed how financial products are marketed. Among these changes, the emergence of finfluencers—social media influencers specializing in financial content—has become a powerful tool for engaging with audiences and building trust. For FinTech startups, finance companies, and other businesses in the financial sector, collaborating with finfluencers offers unique opportunities to promote financial products and reach consumers in a relatable and impactful way.
However, working with finfluencers comes with significant regulatory responsibilities. When promoting financial products in the UK, companies must ensure that their partnerships comply with Financial Conduct Authority (FCA) regulations for financial promotions (finproms). Non-compliance can lead to major consequences, including fines, reputational damage, and legal action.
This blog outlines the best practices for working with finfluencers to promote financial products while staying compliant with FCA guidelines.
Why Compliance Matters When Working with Finfluencers
Finfluencers can be highly influential. Whether offering tips on investment strategies, explaining complex products, or sharing personal finance advice, they engage thousands to millions of followers from all walks of life. This is a compelling proposition for the marketer who wishes to get their message out there - but this high visibility brings increased scrutiny from regulators, especially in the financial space.
Under FCA regulations, all financial promotions must be "fair, clear, and not misleading." This applies not only to companies but also to the influencers who promote their products. The stakes are high: non-compliance with FCA regulations can result in significant penalties, including fines, bans, or legal action.
Recent FCA Actions Against Non-Compliant Ads
The FCA has cracked down on non-compliant financial promotions in recent years. Influencers who failed to disclose financial risks or breached FCA guidelines have faced serious consequences. In 2024, the FCA took targeted action against finfluencers who were flagged as potentially touting financial services products illegally - as a result, 58 finfluencers were either alerted of potential illegal activity or interviewed under caution (Financial promotions data 2024, FCA). During the same period, the FCA had 19,766 financial promotions amended or withdrawn. This is an increase of 97.5%, compared to 10,008 in 2023.
When companies and finfluencers fail to follow the rules together, both parties can face repercussions.
When companies and finfluencers fail to follow the rules together, both parties can face repercussions. Compliance is not a nice-to-have, it’s an essential requirement for fintechs and financial sector companies doing business in the UK. It's crucial that you understand your role in ensuring compliance and monitor your partnerships proactively.
Who Is Responsible for Compliance?
When working with finfluencers, compliance is a shared responsibility between the company and the finfluencer. Both parties must follow FCA regulations to protect consumers and ensure financial promotions meet required standards. Here's how this responsibility is distributed:
The Company's Responsibility
Clear Guidelines: Companies must provide finfluencers with clear rules and expectations for promoting financial products, including the appropriate disclaimers. Ideally, companies should equip finfluencers with clear resources that can help them ensure compliance proactively.
Approval Processes: Content should be reviewed and approved before publication to ensure accuracy and compliance with all relevant regulations.
Ongoing Monitoring: Companies must monitor published promotions to ensure they remain compliant over time. This is because regulations can evolve, and the rules may change while your campaign is live. In this case, you don’t want to be caught in the situation of having non-compliant adverts published unknowingly.
The Finfluencer's Responsibility
Transparency: Finfluencers must disclose paid partnerships and promotional content to their audience clearly. The content they create must be clear about any risks associated with the products they are promoting, and they have to be sure that their message is targeting the appropriate audience based on a number of factors. Finfluencers should not forgo transparency in favor of getting their commission, they are equally responsible as the company is for protecting their followers.
Accuracy: They should communicate information in a way that is fair and not misleading, particularly when financial risk is involved.
Regulatory Awareness: Finfluencers must stay informed about current FCA guidelines to avoid unintentional breaches.
Did you know? Finfluencers can use PromoComply to review their finproms for compliance, to gain confidence and be sure that their promotions are compliant.
Consequences of Non-Compliance
Failure to adhere to FCA rules can harm both the company and the influencer:
Financial penalties, bans, and even legal action;
Damaged reputation with customers and regulators;
Loss of trust within the financial community.
By working collaboratively and prioritizing compliance, businesses and finfluencers can strengthen their partnerships and build credibility in the market.
How to Work Effectively with Finfluencers
Collaborating with finfluencers requires strategic planning and ongoing oversight. Below are actionable tips to ensure a productive and compliant partnership:
1. Choose Your Finfluencer Carefully
Select influencers whose audience aligns with your target demographic, and who demonstrate professionalism, credibility, and ethical practices in their content.
2. Educate Finfluencers on FCA Compliance
Provide training or educational resources on FCA rules, including how to label ads and disclose risks clearly. Offer examples of compliant and non-compliant promotions for reference. Set them up as part of your PromoComply team so they can review their ads for compliance before submitting them to you for review and approval.
3. Establish Transparent Communication
Have an open dialogue with your finfluencers about expectations, deliverables, and compliance requirements. Clear communication upfront prevents misunderstandings.
4. Approve All Content Before Publication
Review all promotional content before it goes live to ensure compliance. Pay close attention to the use of disclaimers and the accuracy of financial claims.
5. Monitor Published Content
Track finfluencer posts after publication to confirm ongoing compliance. Address any non-compliance issues promptly to minimize risks.
6. Maintain Detailed Records
Keep a comprehensive record of your collaboration, including contracts, content approvals, and any compliance-related communications. This audit trail can be essential in case of regulatory scrutiny.
By following these steps, you can create successful and trustworthy collaborations that benefit both your brand and the finfluencer's reputation.
How PromoComply Helps Ensure Compliance
Managing compliance across multiple finfluencer partnerships can be challenging. This is where PromoComply steps in as an essential partner for financial promotions.
What Is PromoComply?
PromoComply is a compliance management platform designed to simplify the process of finprom compliance. Its partner features make it easy to collaborate with influencers and ensure regulatory adherence throughout the lifecycle of financial promotions.
How PromoComply Facilitates Finfluencer Partnerships
Automated Compliance Checks
PromoComply reviews promotional content for compliance with FCA and other regulatory standards.
Real-Time Monitoring
The platform continuously monitors published posts to detect and flag any non-compliance immediately, ensuring timely resolution.
Collaboration Tools
PromoComply provides an intuitive interface for brands and finfluencers to communicate, share guidelines, and track approvals—all in one place.
Secure Audit Trails
All activities, from approvals to updates, are documented for transparency and accountability, making it easy to respond to FCA audits confidently.
With PromoComply, your business can seamlessly combine creativity with compliance, empowering you to promote financial products responsibly while building trust with your audience.
Building Trust Through Compliance
Collaborating with finfluencers offers a world of opportunities for promoting financial products and engaging your audience. However, success hinges on strict adherence to FCA guidelines. By prioritizing compliance, you protect your brand, your partners, and—most importantly—your customers.
Every successful partnership begins with clear rules, transparent communication, and ongoing monitoring. Tools like PromoComply take the guesswork out of compliance, allowing you to focus on growing your business while staying compliant with the highest regulatory standards.
Need help ensuring compliance in your finfluencer campaigns? Sign up with PromoComply today to safeguard your promotions and build trust with your audience and regulators alike.
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