On July 11, 2024, at a plea and trial preparation hearing at Southwark Crown Court, Holly Thompson, Jamie Clayton, Rebecca Gormley, Yazmin Oukhellou, Scott Timlin, Biggs Chris from Love Island, and Lauren Goodger from The Only Way is Essex, each pleaded not guilty to one count of issuing three communications of financial promotions.

The FCA first announced charges against nine individuals in relation to an unauthorized foreign exchange trading scheme promoted on social media in May.

Emmanuel Nwanze faces one count of breaching the General Prohibition under Section 19 of the Financial Services and Markets Act 2000. This is an offence under Sections 19 and 23 of the Financial Services and Markets Act 2000 punishable upon conviction by a fine and/or up to two years’ imprisonment. 

He also faces one count of unauthorised communications of financial promotions under Section 21 of the Financial Services and Markets Act, along with Ms Thompson, Mr Chris, Mr Clayton, Ms Goodger, Ms Gormley, Ms Oukhellou, Mr Timlin and Ms Zapico. 

“In the UK, Consumer Duty has certainly raised the stakes around how firms target their audiences, so there is more reason for them to examine these practices.”

Virginie O’Shea, Founder, Firebrand Research and Regtech mentor

Mr Nwanze pleaded not guilty to providing advice on buying and selling contracts for difference (CFDs) while unauthorized to do so and one count of unauthorised communications of financial promotions.

Eva Zapico did not enter a plea at this time. A further plea hearing for her case was fixed for 26 September 2024.

“The SEC has long been focusing on finfluencers as you can see from actions against high-profile individuals such as Kim Kardashian. There are numerous cases over the last few years and the FCA has been following their lead,” says Virginie O’Shea, Founder, Firebrand Research and Regtech mentor. “In the UK, Consumer Duty has certainly raised the stakes around how firms target their audiences, so there is more reason for them to examine these practices.”

Communicating unauthorized financial promotions is an offence under Sections 21 and 25 of the Financial Services and Markets Act 2000, punishable upon conviction by a fine and/or up to two years’ imprisonment.  

Between 19 May 2018 and 13 April 2021, Emmanuel Nwanze and Holly Thompson reportedly used the Instagram account @holly_fxtrend to issue advice on buying and selling contracts for difference (CFDs) without authorization.

The trial dates have been fixed for 1 February 2027 and 15 March 2027 at Southwark Crown Court. These dates were the earliest the Court could accommodate this case, due to ongoing backlogs.

“The delay in the trial isn’t unusual, especially within the financial services sphere – if you look at cases in the US related to FTX, for example. It is unlikely to impact how cases are tackled overall,” O’Shea adds.