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Action week on finfluencers: UAE introduces licensing rules; UK makes arrests
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June 10, 2025
Nine regulators worldwide took actions on financial influencers as part of a “global week of action against unlawful finfluencers” that began on June 2.
The United Arabs Emirates (UAE)’s Securities and Commodities Authority (SCA) introduced a finfluencer licensing regime, which came into force from May 28, while the UK Financial Conduct Authority (FCA) undertook enforcement related actions, including three arrests and issuing four invitations to finfluencers to come in for interviews under caution.
The UAE’s new regime applies to all individuals registered with the SCA to “provide financial recommendations related to the purchase, sale or holding of a financial product or virtual asset, or to offer recommendations related to a financial service or any local resource within the country,” according to the authority’s announcement.
Licensed finfluencers will have “authorised finfluencer” status, allowing them to share investment analyses and recommendations on regulated UAE products or entities and covering both social media platforms and traditional media channels.
Internet integrity
“Through this [finfluencer] initiative, the SCA aspires to elevate global benchmarks of market integrity, foster transparency, and nurture a disciplined and trustworthy financial environment,” said SCA chief executive officer Waleed Saeed Al Awadhi in a statement.
The UAE Media Council also imposed an influencer licensing regime in June 2024, requiring all “commercialised” online entities to be registered. The cost of obtaining a licence varies depending on its type, from Dh5,750 ($1,565) to Dh11,900 ($3,240) per year.
Under the two regimes, individuals who fail to comply could face penalties and fines, as well as the possibility of business closure. Income from social media activities, including sponsorships or monetised content, is generally subject to value added and corporate tax in the UAE.
Cross-border campaign
With the cross-border nature of the internet, international regulators are joining forces to remove harmful financial content, with nearly half (44%) reporting enforcement actions to the International Organization of Securities Commissions (IOSCO).
The UAE’s licensing regulation is part of a cross-border campaign involving regulators from Australia, Canada, Hong Kong, Italy, the UAE and the UK.
In a statement, Steve Smart, joint executive director of enforcement and market oversight at the FCA, said: “Our message to finfluencers is loud and clear. They must act responsibly and only promote financial products where they are authorised to do so — or face the consequences.”
UK FCA’s action week activity:
- Arrested 3 individuals
Initiated 3 criminal proceedings
Invited 4 finfluencers for interviews
Issued 7 cease and desist letters
Released 50 warning alerts
UK criminal prosecutions
The FCA previously hosted a finfluencer action week in 2024, which led to charges against nine individuals. This year, the UK regulator arrested three individuals on June 3 and 4, and invited four finfluencers for interviews under caution, though these have not yet taken place, according to a spokesperson.
The FCA also issued 50 warning alerts, which it said is expected to result in 650 take-down requests across “multiple” social media platforms and more than 50 websites operated by unauthorised finfluencers.
Following an FCA evidence presentation in April, the UK Treasury Committee sent a letter to social media giant Meta on June 3, seeking details on its approach to finfluencers.