Some of those charged are understood to be well known figures from social media and have appeared in TV shows such as Love Island.

Emmanuel Nwanze, 30, has been charged with running an unauthorised investment scheme and issuing unauthorised financial promotions. He faces a fine and up to two years’ imprisonment. 

The FCA claims that, between 19 May 2018 and 13 April 2021, Mr Nwanze and Holly Thompson, 33, (also know as Holly Zuchero) used an Instagram account (@holly_fxtrends) to provide advice on buying and selling high risk contracts for difference (CFDs) when they were not authorised to do so. 

The FCA also alleges that Mr Nwanze paid Biggs Chris, 32, Jamie Clayton, 32, Lauren Goodger, 37, Rebecca Gormley, 26, Yazmin Oukhellou, 30, Scott Timlin, 36, and Eva Zapico, 25, to promote the @holly_fxtrends Instagram account to their millions of Instagram followers.

Ms Thompson, Mr Chris, Mr Clayton, Ms Goodger, Ms Gormley, Ms Oukhellou, Mr Timlin and Ms Zapico each face one count of issuing unauthorised communications of financial promotions. This is punishable upon conviction by a fine and up to two years in prison.

The combined following of the Instagram accounts was over 4.5m

The defendants will appear before Westminster Magistrates' Court on 13 June.

The FCA published finalised guidance on financial promotions on social media in March to clarify its expectations when firms and influencers use social media to communicate financial promotions and to address emerging consumer harm that the regulator has seen arising from use of social media.    

CFDs are a high-risk investment product used to bet on the price of an asset, in this case the price of foreign currencies. 

The FCA has previously said that 80% of customers lose money when investing in CFDs because of the risks. They are often highly leveraged, which means they use debt to try and amplify returns, which can result in investors losing more than they invested.

It has imposed restrictions on how CFDs and CFD-like options can be sold and marketed to retail customers.