Latest news with #finfluencer
Finextra
8 hours 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
16 hours 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).
Khaleej Times
2 days ago
- Business
- Khaleej Times
UAE: First finfluencers hail new licence, say will reduce misinformation
Regulating financial advice given on social media will help reduce misinformation, UAE's first finfluencers said to Khaleej Times days after the Securities and Commodities Authority (SCA) licensed them. The region's first finfluencer license aims to regulate digital financial content. The initiative seeks to establish a governance framework for individuals offering investment analysis, recommendations, and financial promotions across digital platforms. On June 3, the SCA published its first list of 10 licensed finfluencers authorised to create financial content in the country. Many of these individuals come from backgrounds in banking, law, or finance, leveraging their expertise to educate the public and inspire informed financial decisions. Muhammad Alamer, one of the ten finfluencers listed by the SCA, noted that financial content in the UAE has significantly blossomed in recent years. 'In recent years, financial content in the UAE has matured significantly, driven by increased investor education, regulatory enhancements, and the growing presence of specialised professionals,' he stated, emphasising a shift toward prioritising quality over quantity, with a focus on credibility and actionable insights. On the SCA finfluencer license, Muhammad remarked that it would help reduce misinformation. 'This regulation will enhance trustworthiness, encourage professional standards, and ultimately benefit investors and the broader financial community,' he added. 'This regulatory initiative is expected to promote higher professionalism and mitigate misinformation, positively shaping the UAE's financial advisory landscape toward greater transparency and investor protection.' As a private wealth specialist, trader, and investor with 17 years of experience in UAE banks, his journey into financial advisory stemmed from a deep interest in understanding market dynamics and leveraging technology to enhance decision-making processes, particularly through advanced analytical tools and artificial intelligence. He works closely with ultra-high-net-worth individuals to grow and preserve their wealth, sharing insights through his LinkedIn platform. Mohammed Al Hattawi, another finfluencer listed by the SCA, entered the field of financial content out of passion. He emphasised the significance of the SCA's licensing decision, describing it as a crucial and timely measure that enhances credibility and ensures that those providing financial content are held to both legal and moral standards. 'The license boosts credibility, as it is issued by an official government agency, instilling greater confidence among followers. I appreciate the rigorous requirements for obtaining it, as they ensure that influencers are qualified and trustworthy.' He stated, 'I began my journey in financial content because of my lifelong passion for investing and my realisation that many people needed accurate information, free from misinformation.' The SCA's initiative aims to enhance transparency, trust, and regulation in the rapidly expanding world of financial content. 'My love for the field and my desire to be a trusted source of clear information motivated me to become a finfluencer,' he explained. 'As a financial influencer, my role extends beyond merely sharing information; I aim to inspire people to think critically about their financial decisions, basing them on understanding rather than emotion.' With a background in law and currently pursuing a PhD in Political Science and Economics, he observed that financial content in the UAE has evolved from basic concepts to a truly informed community. Industry experts have also welcomed this decision. While not a finfluencer himself, Ali Abuamriyeh, a Forensic Accounting & Financial Litigation Advisor, stated, 'The UAE's finfluencer license is a timely regulatory step that introduces structure, accountability, and transparency to the fast-growing digital financial content space, particularly in high-risk areas like cryptocurrency and speculative assets.' He believes this move aligns with the UAE's broader efforts to establish a resilient and well-regulated financial ecosystem. 'Similar to licensed investment advisors, finfluencers will now be required to meet clear standards. They must disclose their identity, credentials, affiliations, and the basis of their advice, ensuring that content is based on fact rather than hype or emotional persuasion.' From a forensic and litigation perspective, he highlights several key benefits: Transparency is enhanced through mandatory disclosures, providing a clearer view of a finfluencer's intentions and interests. Legal accountability is reinforced, as oversight from the SCA introduces an enforcement mechanism to deter irresponsible or deceptive advice. Additionally, licensing requirements create a digital audit trail, improving the quality and admissibility of content in legal investigations.
Arabian Business
30-05-2025
- Business
- Arabian Business
Personal Finance
The UAE's 'finfluencer' licensing system combats social media investment scams, with groundbreaking rules requiring anyone with just 1,000 followers who gives financial advice to register with regulators
Arabian Business
30-05-2025
- Business
- Arabian Business
UAE finfluencer licensing brings ‘long overdue accountability' to social media investment advice, experts say
The United Arab Emirates has launched the region's first licensing system for finance influencers, marking a regulatory milestone that wealth managers say brings 'long overdue accountability' to social media financial content that has often put investors at risk. The UAE's Securities and Commodities Authority (SCA) announced the groundbreaking 'finfluencer' licence on Wednesday, establishing a comprehensive framework for individuals offering investment analysis and recommendations across digital platforms. The move comes as regulators worldwide grapple with the growing influence of unqualified social media personalities on public investment decisions. 'Introducing the Finfluencer license is not merely a regulatory measure; it is a strategic move to redefine the role of regulators in the digital economy,' said H.E. Waleed Saeed Al Awadhi, CEO of the SCA. 'Through this initiative, the SCA aspires to elevate global benchmarks of market integrity, foster transparency, and nurture a disciplined and trustworthy financial environment.' هو الشخص المسجل لدى الهيئة لتقديم توصيات مالية تتعلق بشراء أو بيع أو الاحتفاظ بمنتج مالي أو أصل افتراضي أو تقديم توصية تتعلق بخدمة مالية أو أي مصدر داخل الدولة، من خلال وسائل الإعلام التقليدية أو الحديثة كوسائل التواصل الاجتماعي المختلفة المكتوبة أو المسموعة أو غيرها أو المشاركة… — SCA UAE (@sca_uae) May 30, 2025 The regulation applies to anyone with at least 1,000 followers who provides financial recommendations related to regulated products or entities within the UAE, covering everything from social media posts to public seminars and traditional media appearances. Industry welcomes regulatory clarity Daniel George, Head of Business at St James's Place Middle East, described the licence as 'a timely and necessary move' that addresses longstanding concerns about unqualified advice circulating on social media platforms. 'It brings long overdue accountability to social media financial content, where unqualified advice has too often gone unchecked – putting investors at real risk of scams, misinformation and get-rich-fast schemes that backfire,' George told Arabian Business. The wealth management executive said the regulation validates what traditional financial firms stand for: 'trust, transparency and regulated advice.' He added that it 'resets the playing field and reinforces the value of credible, long-term and professional financial advisory in a market flooded with unverified content.' Legal experts also noted that the UAE's approach stands out for its unusually broad scope compared to existing frameworks globally. Hala Harb, a Senior Associate at Dubai-based law firm BSA, said the regulation 'applies across all media formats, not just social media, but also includes offline appearances such as public events and seminars.' Unlike other jurisdictions that typically target licensed firms, the SCA's rules extend to any individual with a notable online presence providing financial advice, regardless of their location if they target UAE audiences. 'The Finfluencer Law sets an important precedent by officially regulating individual content creators, extending rules to influential figures beyond traditional licensed financial institutions,' Harb explained. In a departure from traditional regulatory approaches, the SCA has waived all registration, renewal, and legal consultation fees for three years. This strategy aims to encourage compliance rather than create barriers to entry. However, applicants must still meet specific conditions, including being a certified financial analyst, having at least six months of finance experience, or providing consistent, credible recommendations based on analysis or third-party recognition. Harb noted that the relatively low threshold of 1,000 followers 'reflects a proactive regulatory stance' and means 'even smaller content creators need to be aware that their financial commentary could now fall under formal oversight.' Market impact and client behaviour The regulation comes as wealth managers report increasing client interest in social media-driven investment ideas. George said his firm has had 'clients walk into a meeting quoting something they've seen on Instagram or TikTok and asking if they should jump on the trend.' He welcomed this curiosity but emphasised the importance of bridging 'the gap between general content and personalised, regulated advice.' The licensing system will help introduce accountability into the discovery phase, he said. St James's Place Middle East said it is watching the space closely but will not rush into collaborations with finfluencers. 'If we do engage with finfluencers in the future, it will have to be with those who share our values: long-term thinking, client-outcome-first, and quality over hype,' George said. The initiative forms part of the UAE's broader strategy to cement its position as a leading regional and global financial hub. The SCA said the regulation demonstrates its commitment to 'safeguarding market integrity, advancing financial literacy, and aligning with international best practices.' George believes the regulatory leadership is crucial for attracting high-net-worth individuals and international business. 'HNWIs and international families want to see that a jurisdiction takes investor protection seriously. This move by the SCA sends a clear message: the UAE is not just open for business, it's serious about doing business the right way,' he explained. Enforcement challenges ahead? While industry experts welcome the framework, questions remain about enforcement, particularly for cross-border content creators. Harb said enforcing the rules across borders 'could be challenging due to jurisdictional limits, gaps in platform oversight, and the difficulties in identifying unregistered individuals.' However, she noted that individuals targeting UAE audiences 'could be subject to action, including takedown requests or platform coordination to restrict non-compliant content,' regardless of where they are based. The exact penalty amounts remain unknown due to the untested nature of the regulation. The next challenge, according to George, is 'enforcement and education – making sure both influencers and audiences understand what the licence means.'
