FCA Charges Nine Financial Influencers with Promoting Unauthorized CFDs Trading Scheme

On May 16, 2024, the UK Financial Conduct Authority (FCA) announced charges against nine individuals for promoting an unauthorized forex trading scheme and issuing unauthorized financial promotions on social media.

Between 19 May 2018 and 13 April 2021, Emmanuel Nwanze and Holly Thompson used an Instagram account (@holly_fxtrends) to provide advice on buying and selling contracts for difference (CFDs) when they were not authorized to do so, as alleged by the FCA.

The FCA also alleged that Mr. Nwanze paid Biggs Chris, Jamie Clayton, Lauren Goodger, Rebecca Gormley, Yazmin Oukhellou, Scott Timlin, and Eva Zapico to promote the @holly_fxtrends Instagram account to their millions of Instagram followers.

Ms. Thompson, Mr. Chris, Mr. Clayton, Ms. Goodger, Ms. Gormley, Ms. Oukhellou, Mr. Timlin, and Ms. Zapico each face one count of issuing unauthorized communications of financial promotions.

The defendants will appear before Westminster Magistrates' Court on 13 June 2024.

CFDs are high-risk derivatives. The FCA has previously said that 80% of customers lose money when investing in CFDs because of the risks. They are often highly leveraged, which means they use debt to try and amplify returns, which can result in investors losing more than they invested.