Invest
ASIC's finfluencer warning a 'wake-up call'
The corporate regulator has published an information sheet on how the law applies to social media influencers or “finfluencers” and licensees who use them.
ASIC's finfluencer warning a 'wake-up call'
The corporate regulator has published an information sheet on how the law applies to social media influencers or “finfluencers” and licensees who use them.
The new guidance outlines activities where influencers may contravene the law if they are unaware of their legal requirements, considerations they should take, and also guidance for licensees who are engaging with influencers.
“The way investors access information is changing. It is crucial that influencers who discuss financial products and services online comply with the financial services laws. If they don’t, they risk substantial penalties and put investors at risk,” ASIC commissioner Cathie Armour said.
‘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.”
It comes after a survey conducted by ASIC last week found that 33 per cent of 18 to 21-year-olds follow at least one financial influencer on social media, while 64 per cent of young people said their financial behaviour has changed as a result of following an influencer.
Late last year, the chief commercial officer of advice tech provider Midwinter, Steve Davison called for “a fairer-level playing field” for advisers in competition with finfluencers.
Dr Angel Zhong of RMIT University welcomed ASIC’s news, calling it a “wake-up call” for finfluencers, particularly those who are unlicensed.
“Unverified investment advice is no different to fake news, which is frequently flagged by social media platforms that urge viewers to read with caution,” Dr Zhong said.
“Newbie investors are particularly susceptible to receiving dodgy financial advice, as the internet replaces traditional outlets like accredited financial advisers.
“With the goal of protecting the financial wellbeing of investors, especially the young and inexperienced ones, ASIC can consider conveying the messages to young investors who rely heavily on finfluencers.”
RELATED ARTICLES
Advice
Higher-for-longer, on purpose: How Australian CFOs are resetting playbooks after the RBA’s hawkish signal
The Reserve Bank’s deputy governor has firmly pushed back on near-term rate cut hopes, despite softer headline inflation. For executives, that’s not a macro footnote; it’s a new operating baseline. ...Read more
Advice
State Street economist highlights challenges for RBA amid shifting Australian labour market
In the wake of the latest employment data release, State Street, a global leader in financial services with a staggering US$49.0 trillion in assets under custody and administration, and US$5.45 ...Read more
Advice
Higher-for-longer: How one Australian retailer turned inflation headwinds into operational gains
Inflation’s latest pulse has crushed near-term rate-cut hopes and tightened the screws on mortgage-stretched households—reshaping demand patterns across Australian retail and servicesRead more
Advice
Easing bias, hard choices: What a potential RBA rate cut means for corporate strategy
A softening labour market has put an RBA rate cut back in play. For business leaders, the real question isn’t whether the cut lands in November or a subsequent meeting—it’s how to reposition balance ...Read more
Advice
Advisers tip managed portfolios into the mainstream: North report
In a significant development for the financial advisory sector, AMP's inaugural North Managed Portfolios Insights Report has forecasted that 2025 will mark a pivotal moment for the adoption of managed ...Read more
Advice
Human advantage in an AI world: Why mortgage brokers still win — and how to scale it
Only 6% of borrowers say they would use AI to research mortgages, according to Agile Market Intelligence, underscoring a trust gap in high‑stakes finance that keeps brokers central to the buying ...Read more
Advice
Australia's GDP twist how households and government kept the economy afloat and what's next for businesses
Australia’s June-quarter GDP beat expectations, powered by consumer outlays and higher government consumption despite a slump in public investment. The upside surprise reshapes rate expectations, ...Read more
Advice
Winning back digital-savvy customers requires rewriting the rulebook
Seamless apps are now table stakes. The competitive edge has shifted to ethically intelligent, hyper-personalised and transparently governed experiences that earn trust — and revenue. As the global ...Read more
Advice
Higher-for-longer, on purpose: How Australian CFOs are resetting playbooks after the RBA’s hawkish signal
The Reserve Bank’s deputy governor has firmly pushed back on near-term rate cut hopes, despite softer headline inflation. For executives, that’s not a macro footnote; it’s a new operating baseline. ...Read more
Advice
State Street economist highlights challenges for RBA amid shifting Australian labour market
In the wake of the latest employment data release, State Street, a global leader in financial services with a staggering US$49.0 trillion in assets under custody and administration, and US$5.45 ...Read more
Advice
Higher-for-longer: How one Australian retailer turned inflation headwinds into operational gains
Inflation’s latest pulse has crushed near-term rate-cut hopes and tightened the screws on mortgage-stretched households—reshaping demand patterns across Australian retail and servicesRead more
Advice
Easing bias, hard choices: What a potential RBA rate cut means for corporate strategy
A softening labour market has put an RBA rate cut back in play. For business leaders, the real question isn’t whether the cut lands in November or a subsequent meeting—it’s how to reposition balance ...Read more
Advice
Advisers tip managed portfolios into the mainstream: North report
In a significant development for the financial advisory sector, AMP's inaugural North Managed Portfolios Insights Report has forecasted that 2025 will mark a pivotal moment for the adoption of managed ...Read more
Advice
Human advantage in an AI world: Why mortgage brokers still win — and how to scale it
Only 6% of borrowers say they would use AI to research mortgages, according to Agile Market Intelligence, underscoring a trust gap in high‑stakes finance that keeps brokers central to the buying ...Read more
Advice
Australia's GDP twist how households and government kept the economy afloat and what's next for businesses
Australia’s June-quarter GDP beat expectations, powered by consumer outlays and higher government consumption despite a slump in public investment. The upside surprise reshapes rate expectations, ...Read more
Advice
Winning back digital-savvy customers requires rewriting the rulebook
Seamless apps are now table stakes. The competitive edge has shifted to ethically intelligent, hyper-personalised and transparently governed experiences that earn trust — and revenue. As the global ...Read more
