Three ‘finfluencers’ charged over alleged unlawful promotion of high‑risk CFD trading

Three social media personalities appeared at Westminster Magistrates' Court on Wednesday charged with unlawfully promoting high‑risk foreign exchange trading products known as contracts for difference (CFDs). The Financial Conduct Authority said the defendants — Charles Hunter, Kayan Kalipha and Luke Desmaris — pleaded not guilty and will appear at Southwark Crown Court on Oct. 8 for a hearing.

Each has been charged with one count of communicating an invitation to engage in investment activity, contrary to section 21(1) of the Financial Services and Markets Act 2000. On indictment, the offence can be punished by a fine, or a fine and a prison term of up to two years.

The charges follow a stepped‑up enforcement push by the FCA this year targeting so‑called "finfluencers," social media figures who use platforms such as TikTok, YouTube and Facebook to promote financial products. The regulator said in June that it, together with overseas counterparts, had intensified efforts to tackle illegal financial promotions online.

In a statement the FCA said anyone who believes they have suffered a loss as a result of the alleged promotions should contact its freephone consumer contact centre. The regulator reiterated that some social media promotions can be unlawful when they are made without the necessary authorisation, and warned consumers about the risks of high‑leverage derivative products.

The FCA has previously highlighted the risks of CFDs, saying about 80% of people lose money when investing in them because of their inherent volatility and leverage. In Britain, the FCA restricts how CFDs and similar derivatives may be marketed to retail customers and requires adverts to be fair, clear and not misleading, presenting a balanced view of benefits and risks.

Regulators have been warning finfluencers about compliance for more than a year. In March 2024 the FCA told influencers and firms to stay on "the right side of the rules" when using financial promotions on social channels, saying adverts must be compliant and include an appropriate presentation of risk.

The case underlines growing regulatory scrutiny of online financial advice and marketing amid wider concerns about consumer harm in retail trading. The FCA has said it is actively working to address such harm in the sector and is cooperating with international counterparts on enforcement action. Further procedural hearings and the trial timetable will be determined at the Southwark Crown Court listing on Oct. 8.