ASIC Targets ‘Finfluencers’ Who “Put Investors At Risk”
ASIC has issued a fresh warning to “finfluencers”, popular social media owner holders who give financial advice over YouTube, Instagram, and Facebook, saying they ““risk substantial penalties and put investors at risk” if they operate outside the law.
This comes as ASIC finds that around a third of Aussies aged between 18 and 21 follow at least one financial influencer on social media.
“What we’ve found looking at finfluencers is some of them are crossing the line, they need to know that they need to be licensed effectively, and that they understand their obligation to declare conflicts of interest and are complying with their obligations more broadly,” ASIC’s executive director of markets and corporations Greg Yanco said.
“There are consequences of not listening to this, some of the finfluencers are thinking ‘this shouldn’t apply to me’, and we’re saying ’no, you need to engage with this information, and if you don’t we’ll take action’.”
ASIC is warning these individuals must comply with laws regarding financial services.
“If they don’t, they risk substantial penalties and put investors at risk,” ASIC commissioner Cathie Armour warns.
“ASIC monitors select online financial discussion by influencers who feature or promote financial products for misleading or deceptive representations or unlicensed advice or dealing.
“If we see harm occurring, we will take action to enforce the law.”