Latest news with #GlobalWeekofActionAgainstUnlawfulFinfluencers
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.
New Straits Times
2 days ago
- Business
- New Straits Times
Australian regulator cracks down on 'finfluencers' over unlawful financial advice
SYDNEY: Australia's corporate regulator said on Thursday it had issued warnings to a number of social media "finfluencers", accusing them of offering misleading financial advice and promoting high-risk investment products to their followers. The Australian Securities and Investments Commission warned that the accounts often provided deceptive information and flagged it had sent notices to 18 social media "finfluencers" who were not licensed to provide financial advice. The action was taken as part of the Global Week of Action Against Unlawful Finfluencers held last week, which saw regulators from around the world using regulatory and enforcement powers against unlawful financial influencers. Measures against such illegal activity included arrests, warning notices, website takedowns, and alerts to consumers of the risks of unauthorised and misleading finfluencer content. ASIC said it is concerned that consumers could be harmed by finfluencers providing unauthorised financial product advice and promoting high-risk, complex investment products, such as contracts for difference (CFDs) and over the counter (OTC) derivative products. If a finfluencer is not licenced, an authorised representative or exempt, they are legally not permitted to carry on a business of providing investment business in Australia, the regulator said.
Straits Times
2 days ago
- Business
- Straits Times
Australian regulator cracks down on 'finfluencers' over unlawful financial advice
ASIC said it is concerned that consumers could be harmed by finfluencers providing unauthorised financial product advice. PHOTO ILLUSTRAION: UNSPLASH Australian regulator cracks down on 'finfluencers' over unlawful financial advice Australia's corporate regulator said on June 12 it had issued warnings to a number of social media 'finfluencers', accusing them of offering misleading financial advice and promoting high-risk investment products to their followers. The Australian Securities and Investments Commission (ASIC) warned that the accounts often provided deceptive information and flagged it had sent notices to 18 social media 'finfluencers' who were not licensed to provide financial advice. The action was taken as part of the Global Week of Action Against Unlawful Finfluencers held last week, which saw regulators from around the world using regulatory and enforcement powers against unlawful financial influencers. Measures against such illegal activity included arrests, warning notices, website takedowns, and alerts to consumers of the risks of unauthorised and misleading finfluencer content. ASIC said it is concerned that consumers could be harmed by finfluencers providing unauthorised financial product advice and promoting high-risk, complex investment products, such as contracts for difference (CFDs) and over the counter (OTC) derivative products. If a finfluencer is not licensed, an authorised representative or exempt, they are legally not permitted to carry on a business of providing investment business in Australia, the regulator said. ASIC along with market regulators from the UK, United Arab Emirates, Italy, Hong Kong and Canada took coordinated actions against such unauthorised finfluencers. REUTERS Join ST's Telegram channel and get the latest breaking news delivered to you.
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
Australian regulator cracks down on 'finfluencers' over unlawful financial advice
(Reuters) -Australia's corporate regulator said on Thursday it had issued warnings to a number of social media "finfluencers", accusing them of offering misleading financial advice and promoting high-risk investment products to their followers. The Australian Securities and Investments Commission warned that the accounts often provided deceptive information and flagged it had sent notices to 18 social media "finfluencers" who were not licensed to provide financial advice. The action was taken as part of the Global Week of Action Against Unlawful Finfluencers held last week, which saw regulators from around the world using regulatory and enforcement powers against unlawful financial influencers. Measures against such illegal activity included arrests, warning notices, website takedowns, and alerts to consumers of the risks of unauthorised and misleading finfluencer content. ASIC said it is concerned that consumers could be harmed by finfluencers providing unauthorised financial product advice and promoting high-risk, complex investment products, such as contracts for difference (CFDs) and over the counter (OTC) derivative products. If a finfluencer is not licenced, an authorised representative or exempt, they are legally not permitted to carry on a business of providing investment business in Australia, the regulator said. ASIC along with market regulators from the UK, United Arab Emirates, Italy, Hong Kong and Canada took coordinated actions against such unauthorised finfluencers. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
