Ad disclosure: FCA rules for UK finance influencers

What to take away

When a UK finance influencer needs FCA authorisation

The Financial Conduct Authority regulates financial promotions in the UK. In the course of business, a financial promotion is a communication that invites or induces someone to take part in investment activity. If you are paid to post about a savings account, an investment platform, a cryptoasset or an insurance product, that post can be a financial promotion.

The FCA authorisation trigger is not about follower count. It is about whether you are carrying on a regulated activity by way of business in the UK. Giving investment advice, arranging deals in investments or making arrangements with a view to transactions in investments can all require authorisation.

A one-off unpaid mention is unlikely to trigger it. A regular paid slot promoting investments can.

Most finfluencers do not hold authorisation. That is why the section 21 approver requirement matters. Under section 21 of the Financial Services and Markets Act 2000, an unauthorised person cannot communicate a financial promotion unless it is approved by an authorised person. The Financial Services and Markets Act 2000 (Financial Promotion) Order 2005 (FPO) contains exemptions from the restriction. The authorised person must be competent to approve it and must have the product provider's permission.

The FPO contains narrow exemptions, including Articles 28 and 29 for certain one-off communications and Article 55 for certain communications to existing customers. Each has specific conditions; an existing customer or close personal relationship does not automatically exempt a public post. These exemptions are not designed for a public TikTok account. Do not rely on them for brand work.

A common mistake is to assume the brand carries all the risk. The FCA has been clear that both the firm and the individual communicator can be liable.

If you are an unauthorised person making a promotion for a regulated firm, the firm should have systems to approve and monitor what you publish. If it does not, you are exposed too.

For a broader look at how creator contracts fit together, see our rules and compliance guide.

If you are unsure whether a campaign needs authorisation, ask the brand for the name of its compliance lead and the approver it intends to use. Check the FCA Register to verify the relevant firm's authorised status and, where applicable, the approver's permission to approve financial promotions. If there is no clear answer, treat the campaign as high risk.

Section 21 approvers and approving financial promotions

A section 21 approver is an FCA authorised person who signs off a financial promotion made by an unauthorised person. The approver must be able to show it has the expertise to understand the product, the audience and the medium. It must also have the product provider's consent to approve promotions for that product.

In practice, a finfluencer campaign often works like this:

The approval is not a rubber stamp. The approver must consider whether the promotion is fair, clear and not misleading. It must be able to justify why it approved the content and keep a record of the approval. The FCA expects approvers to have a process for monitoring promotions after approval.

Approval can be withdrawn. If the approver later decides the promotion breaches the rules, it can require the creator to take it down. The sponsorship agreement should say who bears the cost of a takedown and what happens to the fee.

Some brands ask creators to sign a warranty that the content complies with FCA rules. That shifts risk to the creator without giving them the tools to manage it. A better clause sets out the approval process, the named approver and the review timeline.

If you are reviewing boilerplate, our article on advertising rules explains what to look for.

Approval does not transfer to future posts. A section 21 approval covers the specific promotion that was reviewed. If you repost the same content six months later, or adapt it for a different platform, the approval may not cover the new version. Check before you reuse.

What FG24/1 says about financial promotions on social media

FG24/1 is the FCA's finalised guidance on financial promotions on social media. It sets out how the FCA expects firms and creators to apply the financial promotion rules to platforms such as Instagram, TikTok, YouTube and X. The guidance is not a new rulebook, but it explains how existing rules apply. The FCA Handbook's Conduct of Business sourcebook (COBS), including COBS 4 on communicating with clients and financial promotions, sets out the relevant rules for firms.

The guidance covers memes, stories, live streams, podcasts and affiliate links. It says that the format does not change the underlying obligation. If a communication is an invitation or inducement to engage in investment activity, it is a financial promotion. That applies even if it is short, funny or apparently informal.

FG24/1 also addresses the role of influencers. It says firms should have systems and controls to monitor the financial promotions they pay for, including those made by influencers. Firms should not assume that an influencer's personal style removes the need for compliance. The FCA has taken action against unauthorised influencers and has warned firms about their responsibilities.

A key point is that the guidance applies to communications made by unauthorised persons as well as authorised firms. If you are an unauthorised finfluencer, you still need to comply with the financial promotion rules, usually through a section 21 approver.

The guidance is available on the FCA website: FG24/1: Finalised guidance on financial promotions on social media | FCA.

The guidance also covers the use of affiliate links. If you earn commission from a link to a financial product, that is a financial promotion if it invites or induces someone to engage in investment activity. The disclosure must be clear, and the promotion must still be approved if you are unauthorised.

FG24/1 does not create a safe harbour for small accounts. The FCA has said it will prioritise action against those causing the most harm, but the rules apply to all. If you are unsure, assume the guidance applies to you.

Paid promotions, affiliates and the financial promotion perimeter

The financial promotion perimeter is the boundary between communications that are regulated and those that are not. Paid promotions FCA rules apply when the communication is made in the course of business and invites or induces engagement in investment activity. That can include a paid partnership, an affiliate link, a discount code or a gifted trip.

Affiliate marketing is a common grey area. If you write a blog post about a stocks and shares ISA and include an affiliate link, the post may be a financial promotion. If you simply mention a product without any inducement, it may fall outside.

The test is whether the communication is an invitation or inducement, not whether you were paid.

The GOV.UK guidance for content creators, published by the Competition and Markets Authority (CMA), explains the disclosure obligations in plain English. It says you must make it obvious when you have been paid or received something of value. The disclosure should be upfront, not buried in hashtags. See Social media endorsements: guidance for content creators - GOV.UK.

The Advertising Standards Authority also regulates ads on social media. Its guidance on recognising ads says that labels such as #ad or #advert are clear, while vague tags like #sp or #collab may not be enough. The ASA can refer uncooperative influencers to other regulators, including the FCA. The CAP Code (UK Code of Non-broadcast Advertising and Direct & Promotional Marketing) sets the standards the ASA applies to non-broadcast ads.

The ASA guidance is here: Recognising ads: Social media and influencer marketing - ASA | CAP.

The FCA and the ASA have different remits. The ASA covers advertising standards, including misleading claims. The FCA covers financial promotions. A single post can fall under both. That is why a clear ad disclosure is necessary but not sufficient: the content must also meet FCA rules.

The perimeter also matters for brands. A firm that pays an influencer to promote a product is responsible for ensuring the promotion complies. It cannot outsource that responsibility entirely. If the influencer is unauthorised, the firm should have a section 21 approval in place or use its own authorised status.

Risk warnings, fair and clear presentation and record keeping

Risk warnings and fair presentation duties are central to the financial promotion rules. Any promotion has to be honest, transparent and free from misleading claims. It must not emphasise the benefits of a product without giving a balanced view of the risks. For higher-risk investments, specific risk warnings are required.

The FCA expects risk warnings to be prominent. A risk warning buried in a caption or shown for half a second in a video is unlikely to meet the standard. The warning should be in the same medium as the promotion and should be easy to understand.

For example, a risk warning might say: 'Capital at risk. The value of investments can go down as well as up, and you may get back less than you invest.' An example caption for a paid promotion could be: '#ad. Capital at risk. Investments can fall as well as rise.' Where FCA rules require the prescribed warning for a high-risk investment, the wording is: 'Don't invest unless you're prepared to lose all the money you invest. This is a high-risk investment and you are unlikely to be protected if something goes wrong.' The examples above do not replace that required wording where it applies.

Fair presentation also means avoiding cherry-picked performance figures. If you show a return, you should show the risks. If you use a testimonial, it should be representative. The FCA has warned about the use of fake testimonials and misleading claims in social media promotions.

Record keeping is part of the duty. An authorised firm must keep records of the financial promotions it communicates and approves. A section 21 approver should keep a record of what was approved, when, and on what basis. A creator should keep copies of the final approved content, the brief, and any correspondence about changes.

If you handle personal data from your audience, for example through a lead form or a newsletter, you also need to think about data protection. The ICO's UK GDPR guidance applies to creators as data controllers in their own right.

CP24/27 consultation and where the rules are heading

CP24/27 is the FCA's consultation on financial promotions. It proposes changes to the rules on how firms approve and record financial promotions, including those made by third parties such as influencers. The consultation closed in 2025. The FCA has not yet published final rules, but it is expected to confirm them in due course.

The consultation includes proposals to require firms to keep a record of the version of a promotion that was approved, and to make it easier for the FCA to identify who approved a promotion. It also looks at the boundary between financial promotions and other communications.

For influencers, the direction of travel is clear: more scrutiny of paid promotions and more responsibility on firms to monitor their affiliates. The FCA has said it will continue to use its powers, including criminal prosecution for unauthorised financial promotions.

The consultation document is available here: CP24/27: Consultation on financial promotions. It is worth reading if you work with regulated firms, because the final rules may change what they ask of you.

One proposal would require firms to have a named individual responsible for approving promotions. Another would tighten the rules on the use of affiliate links. The FCA has also signalled that it will look at how firms use social media influencers to reach younger audiences.

If you are a creator working with a regulated firm, ask how the firm plans to comply with the final rules. If you are a compliance team, start mapping your influencer approvals now. The changes may require more documentation and faster takedown processes.

The FCA's overall approach is to keep the same standards across media. The rules are not designed to stop influencers from talking about finance, but to ensure that when they do so for payment, the promotion is fair and clear.

Drafting FCA compliance into a sponsorship agreement

A sponsorship agreement should reflect the FCA rules, not just the ASA rules. The agreement should name the section 21 approver, set out the approval process and allocate responsibility for compliance. It should also cover what happens if the FCA or the ASA investigates.

Key clauses to include:

A worked example helps. A finfluencer is paid by an investment platform to post a Reel about a stocks and shares ISA. The platform is FCA authorised; the creator is not. The platform's compliance team approves the script and provides a risk warning.

The creator includes #ad at the start of the caption and the risk warning on screen. The platform keeps a record of the approved script.

The agreement says the approval covers the Reel on Instagram only, not a later TikTok repost. If the creator wants to repost, the platform must approve the new version.

If the platform were not authorised, it would need a section 21 approver. The agreement should name that approver and confirm it has the product provider's permission. Without that, the promotion would be unlawful.

The agreement should also cover data protection if the creator collects leads. The ICO expects a lawful basis for processing and clear privacy information. Our article on data protection covers this in more detail.

Finally, the agreement should require the creator to cooperate with any regulatory enquiry. That includes providing copies of content and correspondence. A creator who deletes posts during an investigation can make things worse.

Common questions