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Social media advice
Finding the right financial advice can be a complicated task, even for the most experienced of investors. Many firms and individuals claim they can help, but how do you know if they really have your best interests at heart? Follow our series on the 'red flags of financial advice', designed to support you in making choices that can help you place your financial future in safe hands.
Financial advice can often be a minefield, it's easy to get lost amongst the numbers and technical terms and fall into the trap of taking financial advice from someone who is not qualified to provide it.
Social media platforms are making it easier to promote financial information, with a large number of individuals promoting 'get-rich-quick' schemes by flouting their lavish lifestyles. Luxury cars and holidays, supposedly evidenced by screenshots of profits, can be incredibly persuasive, particularly to a younger, more receptive audience. With high emphasis on returns, yet barely any mention of risk, individuals are falling victim to investing their hard-earned money. Sadly, more often than not, they will be left out of pocket.
The problem isn't that financial information exists on social media. The problem lies with the large number of individuals lacking regard for the rules and promoting unregulated products on their platforms. Investments which are quite often high risk and likely to result in total loss of invested capital. It's important to remember that the Financial Conduct Authority (FCA) will likely be unable to provide protection to individuals who invest in unregulated products.
Joining together with regulators from across the globe, the FCA are working hard to protect social media users from receiving illegal financial advice from 'finfluencers'. The regulator demonstrated their commitment by levying fines on a group of influencers, who played a role in an unauthorised foreign exchange trading scheme to their collective audience of over four million people.
When seeking financial advice, you should question whether you trust the source of the advice you are receiving and whether you have all the facts before committing to the decision. The harsh reality of taking advice from unregulated individuals on unregulated products is investors being left at a loss, without regulatory protection or the option of redress.
How do you know if your source of financial advice is legitimate? The FCA have a dedicated Firm Checker allowing you to check if a firm is authorised by them and if they have the permission to provide you with the services you need. Using an authorised firm with the correct permissions, doesn't remove all the risk that accompanies investment, but it will greatly reduce your risk of harm.
It is also good practice to check if the product or service you are investing in is covered by the Financial Services Compensation Scheme (FSCS), who may be able to help recover some of your money when an authorised financial firm fails.
Finally, ask yourself if you have enough information and understanding to make an informed decision on the investment you are about to make. And remember, if it seems too good to be true, it probably is.
At Womble Bond Dickinson Wealth Limited, we have a team of qualified and experienced advisors able to provide you with suitable, independent advice, giving you peace of mind that you'll be investing in products and services covered by the regulatory protections of the FCA. Learn more on our dedicated website here.
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This article, written by Womble Bond Dickinson Wealth Limited, which is regulated by the Financial Conduct Authority, is provided for general information only and reflects the relevant rules at the time of publication in September 2026. This article does not constitute any professional advice and so should not be relied on for any purposes. You should consult a suitably qualified professional advisor for further assistance. Please note that past investment performance is not a guide to future performance. The value of an investment and any income from it may go down as well as up over time and investors may not get back the amount originally invested. Care should be taken to ensure that any financial plan and its underlying components are regularly reviewed to take account of any changes such as personal situation, objectives, tax rates and the variabilities of investment performance and associated charges over time.
