Question to the HM Treasury:

To ask His Majesty's Government what assessment they have made of the increasing provision of unregulated financial advice, particularly through social media, financial influencers, and the use of artificial intelligence.

The Financial Conduct Authority’s (FCA) Financial Lives Survey collects data on the sources of information that consumers are using to help with investments and pensions. The latest survey results show that 5.5% of UK adults accessed such information from social media in the year to May 2024. This proportion is higher for younger adults, rising to 9% of 18-24 year olds and 12% of 25-24 year olds. The FCA does not currently collect data on the use of artificial intelligence by consumers.

The provision of financial advice is an FCA-regulated activity and those who provide financial advice need to be authorised by the FCA and have the appropriate qualifications. The FCA can take action against firms or individuals who carry out regulated activity without authorisation. For example, the FCA recently led a global week of action against unlawful influencers resulting in over 650 take down requests on social media platforms in the UK.

The government is committed to ensuring that all consumers can access regulated and high-quality sources of advice and support. That is why together with the FCA, we are developing a new regime called targeted support. This will enable regulated financial services firms to provide more support to give people the confidence to invest and make more informed decisions about their pensions. In addition, the Money and Pensions Service (MaPS) is supported by the government to provide a wide range of tools and guidance to help people manage money confidently at every stage of life.