Among those facing charges, according to Finextra Research, are Lauren Goodger, a former cast member of Only Way is Essex, and other celebrities who improperly promoted high-risk financial products on social media sites like Instagram.

It is said that Holly Thompson and Emmanuel Nwanze used the Instagram handle @holly_fxtrends to advise traders on how to trade high-risk contracts for difference (CFDs) even though they did not have the required authorization. To reach a total audience of 4.5 million followers, they recruited the aid of seven other "influencers" to assist promote the account.

The defendants, which include Goodger, Thompson, and other celebrities from reality TV series including Geordie Shore, Love Island, and Towie, are accused of communicating financial advertising without authorization. In addition, Nwanze is accused of operating an unauthorized investment scheme. They might spend up to two years in jail if found guilty.

The case highlights the dangers of irresponsible advertising and the increasing impact of social media in financial marketing. The Financial Conduct Authority (FCA) has reaffirmed that financial services companies are in charge of the promotions they run, including those using influencers, and that they make sure these kinds of messages comply with legal requirements.

Industry watchers have expressed worry about the need for more stringent regulation and control of influencer marketing in the banking sector in reaction to the FCA's actions. This case should serve as a warning to businesses about the need of carefully screening their marketing partners and making sure all legal criteria are met in order to prevent legal issues.