The Australian Securities and Investments Commission (ASIC) has joined 16 global regulators in cracking down on unlawful social media ‘finfluencers’ providing unlawful financial and investment advice online.
The regulator has issued warning notices to four so-called finfluencers suspected of providing unlicensed financial advice or engaging in misleading or deceptive conduct. It has also commenced a review of several Australian Financial Services (AFS) licensees and their supervision of 15 finfluencers operating under their licences.
The warning notices to the four finfluencers relate to suspected provision of unlicensed financial advice, including promoting claims of guaranteed investment returns, which it said may also be misleading or deceptive.
ASIC’s action formed part of the second global week of action against unlawful finfluencers, which involves 17 regulators across Asia, Europe, North America, South America and the Middle East to disrupt unlawful online financial promotion.
It comes as recent Moneysmart research shows that 63% of young Australians (aged 18–28) rely on social media for financial information.
ASIC Commissioner Alan Kirkland said: "Finfluencers must either hold an AFS licence or operate as an authorised representative to legally provide financial product advice or arrange for their followers to deal in financial products.
"If someone on social media is promising easy money or guaranteed returns, there is a real risk they’re breaking the law."
