Latest news with #AlanKirkland
Finextra
a day ago
- Business
- Finextra
Asic cracks down on 'finfluencers'
ASIC has issued warning notices to 18 social media 'finfluencers' suspected of unlawfully promoting high-risk financial products and providing unlicensed financial advice to Australians as part of a Global Week of Action Against Unlawful Finfluencers by nine international market regulators. 0 Last week, ASIC and regulators from the United Kingdom, United Arab Emirates, Italy, Hong Kong and Canada took coordinated actions to crack down on unauthorised finfluencers. Together, the nine regulators used a combination of regulatory and enforcement powers including arrests, warning notices, website takedowns, educational schemes with authorised finfluencers and consumer awareness programs to put unauthorised finfluencers on notice and warn consumers of the risks of unauthorised and misleading finfluencer content. ASIC Commissioner Alan Kirkland said, 'Regulators across the world have joined forces to disrupt unlawful finfluencer activity.' 'It's important that consumers separate fun from fact when it comes to finfluencer content. Popularity doesn't equal credibility. Check their credentials and whether they're licensed or authorised, before checking your money out.' Following the issuance of INFO Sheet 269 Discussing financial products and services online (INFO 269) in 2022, ASIC has observed a noticeable drop in social media posts spruiking financial products and services by unauthorised finfluencers. 'In Australia, after ASIC issued INFO 269, we saw that many finfluencers changed what they were saying or became licensed or authorised representatives to comply with the law,' Mr Kirkland added. 'Australian Financial Services licensees who engage influencers also improved their due diligence and monitoring of finfluencers to ensure they don't provide unlicensed financial services and that consumers are not misled.' ASIC's current concerns lie with finfluencers positioning themselves as so-called trading experts, who are providing unauthorised financial product advice and promoting high-risk, complex investment products that can cause real consumer harm, such as contracts for difference (CFDs) and over the counter (OTC) derivative products. Their social media content is often accompanied by misleading or deceptive representations about the prospects of success from the products or trading strategies they promote, sharing images of lavish lifestyles, sportscars and other luxury goods. 'We are seeing a pattern where these unlicensed finfluencers invite consumers to join their closed communities or forums to learn their secrets to success or copy their trades,' Mr Kirkland said. If a finfluencer is not licensed, an authorised representative or exempt, they're legally not permitted to carry on a business of providing investment advice in Australia. Investors and consumers can check the credentials of finfluencers out by using ASIC's professional registers search tool. Recent Moneysmart research found that 41% of young Australians seek financial information or advice from online sources such as social media, including finfluencers. 'Australia's financial services laws protect investors and promote market integrity. They set minimum requirements and provide important protections for investors if something goes wrong. 'If you spruik or discuss financial products and services online, you need to carefully consider how the law applies to you and seek legal advice if you are unsure,' Mr Kirkland said. ASIC conducts targeted monitoring of financial discussion by finfluencers that feature or promote financial products. Where we see harm occurring, we will take action to enforce the law. Unlicensed activity can be reported to ASIC on our How to report misconduct webpage or by calling 1300 300 630 so that we can consider appropriate regulatory action. Background In addition to ASIC, the nine regulators involved in the Global Week of Action Against Unlawful Finfluencers included: Canada, Alberta Securities Commission Canada, Autorité des marchés financiers, Quebec, Canada, British Columbia Securities Commission Canada, Ontario Securities Commission Hong Kong, Securities and Futures Commission Italy, Commissione Nazionale per le Società e la Borsa United Arab Emirates, Securities and Commodities Authority United Kingdom, Financial Conduct Authority ASIC issued INFO 269 in March 2022 for social media influencers who discuss financial products and services online. The licensing provisions under the Corporations Act 2001 (the Act) apply to persons who carry on a financial services business in Australia. This includes persons who provide financial product advice or arrange for a person to deal in a financial product. Carrying on an unlicensed financial services business in Australia is an offence under the Act, unless authorised as a representative of a licensee or relying on an exemption. The Act imposes significant penalties, including up to five years' imprisonment for an individual and financial penalties into the millions of dollars for a corporation. The law also prohibits conduct that is misleading or deceptive, or is likely to mislead or deceive, in relation to financial products or services. A finfluencer does not need to be licensed to breach the misleading or deceptive prohibitions. In December 2022, the Federal Court found social media finfluencer Tyson Robert Scholz contravened s911A of the Corporations Act by carrying on a financial service business (between March 2020 and November 2021) without an Australian financial services licence (22-371MR).
Finextra
2 days ago
- Business
- Finextra
Asic cracks ddown on 'finfluencers'
ASIC has issued warning notices to 18 social media 'finfluencers' suspected of unlawfully promoting high-risk financial products and providing unlicensed financial advice to Australians as part of a Global Week of Action Against Unlawful Finfluencers by nine international market regulators. 0 Last week, ASIC and regulators from the United Kingdom, United Arab Emirates, Italy, Hong Kong and Canada took coordinated actions to crack down on unauthorised finfluencers. Together, the nine regulators used a combination of regulatory and enforcement powers including arrests, warning notices, website takedowns, educational schemes with authorised finfluencers and consumer awareness programs to put unauthorised finfluencers on notice and warn consumers of the risks of unauthorised and misleading finfluencer content. ASIC Commissioner Alan Kirkland said, 'Regulators across the world have joined forces to disrupt unlawful finfluencer activity.' 'It's important that consumers separate fun from fact when it comes to finfluencer content. Popularity doesn't equal credibility. Check their credentials and whether they're licensed or authorised, before checking your money out.' Following the issuance of INFO Sheet 269 Discussing financial products and services online (INFO 269) in 2022, ASIC has observed a noticeable drop in social media posts spruiking financial products and services by unauthorised finfluencers. 'In Australia, after ASIC issued INFO 269, we saw that many finfluencers changed what they were saying or became licensed or authorised representatives to comply with the law,' Mr Kirkland added. 'Australian Financial Services licensees who engage influencers also improved their due diligence and monitoring of finfluencers to ensure they don't provide unlicensed financial services and that consumers are not misled.' ASIC's current concerns lie with finfluencers positioning themselves as so-called trading experts, who are providing unauthorised financial product advice and promoting high-risk, complex investment products that can cause real consumer harm, such as contracts for difference (CFDs) and over the counter (OTC) derivative products. Their social media content is often accompanied by misleading or deceptive representations about the prospects of success from the products or trading strategies they promote, sharing images of lavish lifestyles, sportscars and other luxury goods. 'We are seeing a pattern where these unlicensed finfluencers invite consumers to join their closed communities or forums to learn their secrets to success or copy their trades,' Mr Kirkland said. If a finfluencer is not licensed, an authorised representative or exempt, they're legally not permitted to carry on a business of providing investment advice in Australia. Investors and consumers can check the credentials of finfluencers out by using ASIC's professional registers search tool. Recent Moneysmart research found that 41% of young Australians seek financial information or advice from online sources such as social media, including finfluencers. 'Australia's financial services laws protect investors and promote market integrity. They set minimum requirements and provide important protections for investors if something goes wrong. 'If you spruik or discuss financial products and services online, you need to carefully consider how the law applies to you and seek legal advice if you are unsure,' Mr Kirkland said. ASIC conducts targeted monitoring of financial discussion by finfluencers that feature or promote financial products. Where we see harm occurring, we will take action to enforce the law. Unlicensed activity can be reported to ASIC on our How to report misconduct webpage or by calling 1300 300 630 so that we can consider appropriate regulatory action. Background In addition to ASIC, the nine regulators involved in the Global Week of Action Against Unlawful Finfluencers included: Canada, Alberta Securities Commission Canada, Autorité des marchés financiers, Quebec, Canada, British Columbia Securities Commission Canada, Ontario Securities Commission Hong Kong, Securities and Futures Commission Italy, Commissione Nazionale per le Società e la Borsa United Arab Emirates, Securities and Commodities Authority United Kingdom, Financial Conduct Authority ASIC issued INFO 269 in March 2022 for social media influencers who discuss financial products and services online. The licensing provisions under the Corporations Act 2001 (the Act) apply to persons who carry on a financial services business in Australia. This includes persons who provide financial product advice or arrange for a person to deal in a financial product. Carrying on an unlicensed financial services business in Australia is an offence under the Act, unless authorised as a representative of a licensee or relying on an exemption. The Act imposes significant penalties, including up to five years' imprisonment for an individual and financial penalties into the millions of dollars for a corporation. The law also prohibits conduct that is misleading or deceptive, or is likely to mislead or deceive, in relation to financial products or services. A finfluencer does not need to be licensed to breach the misleading or deceptive prohibitions. In December 2022, the Federal Court found social media finfluencer Tyson Robert Scholz contravened s911A of the Corporations Act by carrying on a financial service business (between March 2020 and November 2021) without an Australian financial services licence (22-371MR).
Perth Now
2 days ago
- Business
- Perth Now
‘Finfluencers' on notice as ASIC warns of high-risk advice
Australia's corporate watchdog has issued warning notices to 18 social media influencers suspected of promoting high-risk financial products without a licence, amid growing concern that flashy online lifestyles are luring young Australians into dangerous investment territory. The Australian Securities and Investments Commission confirmed it had written to a cohort of so-called 'finfluencers' — content creators who post financial tips online — advising them they may be in breach of the Corporations Act by giving unlicensed financial advice and promoting complex products such as derivatives. ASIC Commissioner Alan Kirkland said the warnings were part of a coordinated global enforcement effort and aimed to protect consumers from being misled by popularity masquerading as credibility. 'This action is about making sure people are asking the right questions and are aware of the risks they may be taking if they follow the advice of a finfluencer,' he said. 'Don't let your hard-earned money fund the lifestyles of people whose expertise is making slick social media content, not complex financial advice.' The notices demand that recipients explain what steps they have taken — or plan to take — to comply with the law, including whether they are licensed or authorised to provide financial product advice. ASIC warned it may escalate the matter if it believed further action was warranted. The regulator is particularly concerned that some influencers are using private communication channels such as direct messages to promote investments they are themselves associated with — a practice that may still fall afoul of financial services laws, even if done outside the public eye. 'We are seeing a troubling pattern where these unlicensed finfluencers invite consumers to join their closed communities or forums to learn their so-called secrets to success or to copy their trades,' Mr Kirkland said. 'Finfluencers are on notice that even when advice is provided through private channels, the law still applies.' The warning comes as research from ASIC's Moneysmart program shows that 41 per cent of young Australians now turn to online sources, including finfluencers, for financial advice. It follows a Global Week of Action Against Unlawful Finfluencers, which saw regulators in nine jurisdictions — including the UK, UAE, Hong Kong and Canada — launch enforcement actions, issue warnings, and coordinate educational campaigns to counter the rise in unlicensed social media financial advice. The UK Financial Conduct Authority, which spearheaded the campaign, used its powers to take down websites, run consumer awareness programs and partner with licensed influencers to promote responsible online financial engagement. In 2022, the regulator issued a similar warning and noted that giving unlicensed financial advice could attract penalties of up to five years' imprisonment or fines of $1 million for corzporations. ASIC has already acted against unlawful finfluencing. In November 2022, the Federal Court found that social media personality Tyson Robert Scholz, known online as '@ASXWOLF_TS,' and who flaunted a lifestyle of luxury cars and private jets had contravened the Corporations Act by carrying on a financial services business without a licence. Scholz offered share trading seminars, subscription packages, and individual trading tips through Instagram and a private Discord chatroom called the 'Black Wolf Pit,' charging followers up to $1,500 for access. In its action, ASIC alleged Sholz bilked followers of more than $1.15 million between March 2020 and August 2021. In February last year, Scholz was declared bankrupt for failing to pay $500,000 in court costs. ASIC said investors and consumers can check the credentials of finfluencers out by using ASIC's professional registers search tool, and has warned consumers to be vigilant about who they turn to for financial advice. 'It's important that consumers separate fun from fact when it comes to finfluencer content. Popularity doesn't equal credibility. Check their credentials and whether they're licensed or authorised, before checking your money out,' Mr Kirkland said.
West Australian
2 days ago
- Business
- West Australian
ASIC warns ‘finfluencers' as global regulators crack down on risky online advice
Australia's corporate watchdog has issued warning notices to 18 social media influencers suspected of promoting high-risk financial products without a licence, amid growing concern that flashy online lifestyles are luring young Australians into dangerous investment territory. The Australian Securities and Investments Commission confirmed it had written to a cohort of so-called 'finfluencers' — content creators who post financial tips online — advising them they may be in breach of the Corporations Act by giving unlicensed financial advice and promoting complex products such as derivatives. ASIC Commissioner Alan Kirkland said the warnings were part of a coordinated global enforcement effort and aimed to protect consumers from being misled by popularity masquerading as credibility. 'This action is about making sure people are asking the right questions and are aware of the risks they may be taking if they follow the advice of a finfluencer,' he said. 'Don't let your hard-earned money fund the lifestyles of people whose expertise is making slick social media content, not complex financial advice.' The notices demand that recipients explain what steps they have taken — or plan to take — to comply with the law, including whether they are licensed or authorised to provide financial product advice. ASIC warned it may escalate the matter if it believed further action was warranted. The regulator is particularly concerned that some influencers are using private communication channels such as direct messages to promote investments they are themselves associated with — a practice that may still fall afoul of financial services laws, even if done outside the public eye. 'We are seeing a troubling pattern where these unlicensed finfluencers invite consumers to join their closed communities or forums to learn their so-called secrets to success or to copy their trades,' Mr Kirkland said. 'Finfluencers are on notice that even when advice is provided through private channels, the law still applies.' The warning comes as research from ASIC's Moneysmart program shows that 41 per cent of young Australians now turn to online sources, including finfluencers, for financial advice. It follows a Global Week of Action Against Unlawful Finfluencers, which saw regulators in nine jurisdictions — including the UK, UAE, Hong Kong and Canada — launch enforcement actions, issue warnings, and coordinate educational campaigns to counter the rise in unlicensed social media financial advice. The UK Financial Conduct Authority, which spearheaded the campaign, used its powers to take down websites, run consumer awareness programs and partner with licensed influencers to promote responsible online financial engagement. In 2022, the regulator issued a similar warning and noted that giving unlicensed financial advice could attract penalties of up to five years' imprisonment or fines of $1 million for corporations. ASIC has already acted against unlawful finfluencing. In November 2022, the Federal Court found that social media personality Tyson Robert Scholz, known online as '@ASXWOLF_TS,' and who flaunted a lifestyle of luxury cars and private jets had contravened the Corporations Act by carrying on a financial services business without a licence. Scholz offered share trading seminars, subscription packages, and individual trading tips through Instagram and a private Discord chatroom called the 'Black Wolf Pit,' charging followers up to $1,500 for access. In its action, ASIC alleged Sholz bilked followers of more than $1.15 million between March 2020 and August 2021. In February last year, Scholz was declared bankrupt for failing to pay $500,000 in court costs. ASIC said investors and consumers can check the credentials of finfluencers out by using ASIC's professional registers search tool, and has warned consumers to be vigilant about who they turn to for financial advice. 'It's important that consumers separate fun from fact when it comes to finfluencer content. Popularity doesn't equal credibility. Check their credentials and whether they're licensed or authorised, before checking your money out,' Mr Kirkland said.
Yahoo
2 days ago
- Business
- Yahoo
Major crackdown as millions warned over following this financial advice: 'Real harm'
Australians are being warned to be wary of financial advice promoted on social media. The Australian Investments and Securities Commission (ASIC) has zeroed in on 18 financial social media influencers who have been dishing out potentially dodgy advice to their thousands of supporters Colloquially named "finfluencers", these people have racked up a massive online following from their guidance on how to become rich. But ASIC Commissioner Alan Kirkland said some of these people aren't even qualified to give financial advice. "It's important that consumers separate fun from fact when it comes to finfluencer content. Popularity doesn't equal credibility," he said. RELATED ATO warning as Australians follow 'outrageous' trend to boost tax returns Aussie teen's job paying $300 per hour without a uni degree Centrelink cash boost coming from July 1 for millions of Aussies "Check their credentials and whether they're licensed or authorised, before checking your money out." ASIC has been particularly concerned with the finfluencers claiming to be stock market trading experts. Some provide unauthorised advice that can promote "high-risk, complex investment products" that can cause "real consumer harm".They share images of themselves or other people enjoying lavish lifestyles, fast and expensive cars, and drowning in luxury goods as a result of jumping on these investment bandwagons. Aussies can be lured away from public social media accounts and encouraged to join these finfluencers' closed online communities, which can make it harder for ASIC to track what is being said in these forums. It's in these online groups that the finfluencers claim to give out their biggest, potentially harmful secrets. Under Australian law, if you're not licensed, you're not legally permitted to provide financial or investment advice. ASIC's warning notices to the more than dozen finfluencers in Australia was part of a global crackdown on the issue, with authorities from the UK, UAE, Italy, Hong Kong and Canada all taking coordinated actions against certain content creators. They were all suspected of unlawfully promoting high-risk financial products and providing unlicensed financial advice. Some of the actions included arrests, warning notices, website takedowns, educational schemes with authorised finfluencers, and consumer awareness programs to put unauthorised finfluencers on notice. This is the first major local suppression on dodgy finfluencers since 2022, where ASIC gave content creators strict guidelines on how to disseminate financial advice lawfully in Australia. Following that movement, ASIC noticed a big change. "We saw that many finfluencers changed what they were saying or became licensed or authorised representatives to comply with the law," Kirkland said. He added that Australian Financial Services licensees also started reaching out to finfluencers to make sure they improved their due diligence. CPA Australia issued a similar warning last month after seeing potentially misleading tax advice from content creators. In one instance, a finfluencer suggested you could claim expenses for your pet by telling the Australian Taxation Office (ATO) that it's a guard dog and you work from home. 'In many cases, the advice from these accounts is simply wrong. In other cases, the claims have an ounce of truth but would apply only to a very small group of workers,' CPA Australia's Jenny Wong said. 'Some finfluencers exaggerate the potential for certain claims to garner attention and likes. This is not serious advice. It should be ignored. 'Having a large following on TikTok doesn't automatically make someone an expert on a particular subject, especially one as complex as the Australian tax system.' She said you should speak to a licensed financial advisor about tax deductions and other claims when you lodge your tax return after July 1.
