ASIC clamps down on social media influencers

AFA News 31 March 2022.

On 21 March 2022, ASIC published an information sheet outlining how the law applies to social media influences.  At the AFA, we often receive feedback from members on the conduct of ‘finfluencers’ and we are therefore supportive of ASIC issuing this notice.

ASIC acknowledged the way investors access information is changing.  They have conducted a survey amongst young people in the 18–21-year-old age bracket, which found 33% of them follow at least one financial influencer on social media.  The survey also found that 64% of young people said they had changed at least one of their financial behaviours as a result of following a financial influencer.

ASIC have stressed that it is crucial that influencers, who discuss financial products and services online, must comply with financial services laws.  They have highlighted the risks involved in conduct that could be assessed as providing financial product advice, dealing or misleading and deceptive conduct.

The below link provides examples in which financial influencers may or may not overstep the line.

Click here for the ASIC Media release.

ASIC have warned that to carry on an unlicensed financial services business can attract a penalty of up to five years imprisonment.

Click here for the Information sheet (INFO 269).

Issued 31.03.2022. AFA Policy & Education Update