UK Court Sets Trial Dates for Alleged Forex Scheme Finfluencers

The Financial Conduct Authority (FCA) is suing nine individuals who promoted an unauthorized foreign exchange trading scheme on social media. Today, at Southwark Crown Court, the defendants attended a hearing to prepare for trial and enter pleas regarding charges of promoting financial products without authorization.

Trial Dates Scheduled

Trial dates have been set for several individuals who have pleaded not guilty to charges. One person also denied providing unauthorized financial advice. Another individual hasn’t entered a plea yet; their hearing is scheduled for September 26, 2024.

The trials will take place on February 1, 2027, and March 15, 2027, at Southwark Crown Court due to scheduling constraints. These dates are the earliest available for the court to handle this complex case.

Anyone who believes they’ve suffered financial losses related to this issue should contact the FCA’s consumer contact centre for help.

Gamification in Investment Apps

The FCA raised concerns about how trading apps use digital engagement practices (DEPs), which could expose investors to more risks. Finance Magnates reported that the FCA conducted a study using a new trading app to see how these practices affect trading behavior. The study involved over 9,000 users and found that features like push notifications and prize draws increased trading frequency by 11% and led to riskier investment decisions by 12%. 

These gamification tactics also saw an 8% rise in trades involving high-risk investments and a 6% increase in such investments. The FCA noted that DEPs particularly impact people with lower financial knowledge, women, and younger adults aged 18-34. Trading apps must now adjust their services under the Consumer Duty rules to ensure they support informed investment choices.

Bottom Line

Nine people are being sued by the Financial Conduct Authority (FCA) for being involved in an illegal forex trading scam that was promoted on social media. A number of them denied charges, and their trial is set for early 2027. Moreover, FCA also has concerns about the influence of digital engagement practices on trading apps which could result in more risky investment behaviors, especially amongst high risk groups.

Also read: Former Yukom Employee Sentenced in Binary Options Fraud Case