Fca Uses Celebrities To Warn Of Trading Risks

last updated on

Fca Uses Celebrities To Warn Of Trading Risks

FCA Uses Celebrities To Warn Of Trading Risks

Influencers can play important roles for a purpose to convince the mass. Assuming the same, the UK watchdog FCA has emerged with a plan to make a deal with such celebrities to warn people about high-risk investments. With a budget of 11 million pounds, the authority is trying to reach the risk-takers and particularly the young investors.

Technology has democratized trading. Investors have never before enjoyed such a level of freedom. New products are easily being made available and people have instant access to these with their life savings. However, the freedom is equipped with risk and FCA is trying to make them understand the risks.

FCA said some beginners started investing during the COVID-19 pandemic lockdown period in unsuitably high-risk products. They are warned against such products including cryptocurrencies. Moreover, it is a matter of concern that a handful of celebrities have endorsed such products. Last August, a post on Instagram by TV star Lauren Goodger was hit with a ban as she failed to mark the content as an advertisement.

A recent survey reveals that 45 percent of investors aged between 18 and 29 agreed they made their first investment in cryptocurrency and many of them funded it through loans or credit cards. This is one of the reasons that FCA is trying to help young investors in making informed decisions.

The authority said about 8.6 million Britons are presently holding investment assets worth over 10,000 pounds in cash. This could turn up a major boost for the industry. It is aimed to minimize such consumers and make them jump to investments from cash savings.

Trending Stories