The Australian Securities and Investments Commission (ASIC) has intensified its efforts against unlicensed social media influencers, cautioning them against promoting financial products or offering financial advice without proper authorization.
As part of a coordinated international initiative, ASIC has issued warning notices to 18 social media personalities suspected of unlawfully promoting high-risk financial products and providing unlicensed financial advice. The campaign, known as the Global Week of Action Against Unlawful Finfluencers, was conducted in partnership with regulators from the United Kingdom, United Arab Emirates, Italy, Hong Kong, and Canada.
This global enforcement action combined arrests, warning notices, website takedowns, educational programs with authorized financial influencers, and consumer awareness campaigns to address the risks posed by unauthorized financial promotion.
“It’s important that consumers separate fun from fact when it comes to finfluencer content,” ASIC Commissioner Alan Kirkland stated in a media release. “Popularity doesn’t equal credibility. Check their credentials and whether they’re licensed or authorised, before checking your money out.”
ASIC has expressed concerns over social media influencers portraying themselves as trading experts while promoting high-risk, complex investment products such as contracts for difference (CFDs) and over-the-counter (OTC) derivative products. These promotions are often accompanied by misleading claims about potential profits and aspirational imagery depicting luxury lifestyles, expensive cars, and high-end travel.
Since the release of its guidance document, INFO Sheet 269: Discussing Financial Products and Services Online, in 2022, ASIC has observed a decline in unauthorized financial content. Some influencers have either adapted their messaging to comply with regulations or have pursued proper licensing as authorized representatives.
Financial services firms engaging influencers have also strengthened their due diligence, enhancing their oversight to ensure compliance and mitigate risks associated with misleading financial promotions.
This initiative underscores the growing regulatory scrutiny of social media influencers operating in the financial sector, reinforcing the importance of transparency and adherence to legal standards.
