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What were the influencers promoting?
The influencers were promoting a high-risk investment product called contracts for difference (CFDs) without proper authorisation. This type of investment allows traders to speculate on the price movements of assets without owning them, but it comes with significant risks.
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What charges do the influencers face and when will they appear in court?
All nine individuals face charges of issuing unauthorised financial promotions. They are scheduled to appear in court on June 13. If convicted, the influencers could potentially face up to two years in prison for their actions.
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How many followers do the influencers have on Instagram?
The influencers involved in this case have a combined following of 4.5 million on Instagram. This large following indicates the potential reach and impact of their promotional activities.
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What is the significance of this event?
This event highlights the growing influence of social media personalities in financial markets and the potential risks involved. It underscores the importance of regulatory oversight in protecting consumers from high-risk investments and serves as a cautionary tale about the dangers of taking financial advice from unverified sources.
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What are contracts for difference (CFDs) and why are they considered high-risk?
Contracts for difference (CFDs) are high-risk investment products that allow traders to speculate on the price movements of assets without owning them. The high-risk nature of CFDs is due to the leverage involved, which can amplify both gains and losses for investors.