ASIC warns ‘Finfluencers’

You need to make sure you are operating within the law - these words echo out of the latest ASIC information sheet (INFO269) putting social media influencers whose content discuss financial products - commonly referred to as ‘finfluencers’ and AFS licensees who use finfluencers on notice or face serious consequences.

The Finfluencer market has grown exponentially alongside the rise of retail trading platforms, cryptocurrency exchanges and the ability to produce their content on multiple platforms such as instagram, tiktok, and podcasts. The content can vary across a spectrum of financial topics from household budgeting and money saving tips to actually encouraging their followers to invest in certain shares/investments by boasting their success stories or further arranging for followers to deal in certain financial products.

ASIC warns in their non-exhaustive list that your content can share factual information regarding a financial product, however if that content conveys a recommendation that a follower should (or should not) invest in a financial product this could be interpreted as providing unlicensed financial product advice.

Some Finfluencers, such as Stong Money Australia’s Dave Gow believe that while it is important to flag the misleading and deceptive conduct operating within the social media circles, we live time where Australians seek to be more financially savvy than ever before; could these restrictions hinder a person's journey of self-knowledge where “Writing almost anything could influence someone to invest or use any financial product.”.

Regardless of the above, the rules have been made abundantly clear to content creators within the financial space. Should you have any concerns about your content, ASIC recommends that you seek legal advice before posting!