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Arabian Business
4 days ago
- 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.'
Khaleej Times
7 days ago
- Business
- Khaleej Times
How can an investor protect his savings in India amid stock market volatility
Question: The Indian capital market has been on a roller coaster ride during the past few weeks as a result of the tariff war. How should an investor protect his savings during these turbulent times? ANSWER: Generally investors tend to hold back their investments during periods of high volatility in the equity markets. In such a scenario, investors having liquid cash have the option to go in for a Systematic Transfer Plan. This is done by transferring from a liquid or overnight fund to an equity fund over a period of time when the market settles down. The investor may decide on the frequency of transfer as he may be advised by his wealth managers. The benefit of using the STP route is that the money remains invested in a liquid fund which fetches a return on investment that is higher than the interest earned on a savings bank account. Another avenue for investment is in liquid Exchange Traded Funds where the surplus cash is parked. Over the last year, assets under management in liquid ETFs have risen 31 per cent from Rs172 billion to around Rs235 billion. The growing popularity of liquid ETFs has resulted in new launches of such funds especially by well-known financial services companies. As a debt product, liquid ETFs are not subject to the securities transaction tax and, in order to encourage investors to use this avenue for investment, several brokers waive their brokerage charges on buying and selling of ETFs. ETFs primarily invest in overnight instruments including Government securities and treasury bills, making them risk free and high on liquidity. Question: My son is specialising in technologies pertaining to AI. As I have a fairly comfortable home in India, he wants to return and look for a suitable opening in this field. Are there opportunities for leadership roles? ANSWER: AI leadership roles are in great demand in India and there was a significant jump in hiring in this space during the last one year. This increase correlates with the shift from pilot AI initiatives to scaled enterprise adoption, especially in healthcare and retail where data driven transformation is accelerating. The demand is driven by firms across IT, consulting, ecommerce, fintech, deeptech and GenAI focussed startups which are setting up AI centres of excellence in India. Companies are on a recruitment spree in relation to leadership talent for consulting-led engagements and for creating industry-specific AI solutions. The compensation packages are exceptionally superior, especially in Global Capability Centres (GCCs) set up by multinational companies in India. The demand for this talent is expected to double in the current financial year owing to rising strategic significance. Some business leaders refer to this as the new AI economy offering services across AI advisory, AI engineering and AI solutions. Leading companies have been hiring talent for positions which drive innovation. The objective of most companies is to nurture expertise across the entire AI value chain and drive AI-led reinvention for clients across various sectors. Question: The fast moving consumer goods industry has recorded a marginal growth according to research analysts. Will this have a dampening effect on the overall growth projections of the Indian economy for the current fiscal year 2025-26? ANSWER: Products manufactured by medium and small enterprises drove FMCG growth for the quarter ended 31st March, 2025. Rural markets outpaced urban centres, growing four times faster. To put it in perspective, rural markets grew by 8.4 per cent year on year, contributing almost 40 per cent of the overall consumer goods sold in India. Small manufacturers grew twice as fast than the overall FMCG market mainly on account of changing market dynamics and higher purchasing power in the hands of the rural masses. Inflation is coming down gradually and therefore consumption is expected to pick up in the current financial year 2025-26. According to leading FMCG companies like Nestle, Hindustan Unilever, Dabur and others, urban demand is likely to pick up in the third and fourth quarters of this financial year. The reduction in income tax outgo for the middle class tax payers is expected to give a further boost to consumption. Therefore, the GDP growth forecast of 6.4-6.6 per cent is considered to be realistic, given the fact that trade and exports are likely to increase in the next nine months of the current financial year as a result of bilateral trade treaties entered into by India with the United Kingdom and in the near future with the European Union and the United States of America. The writer is a practising lawyer, specialising in corporate and fiscal laws of India.
Yahoo
23-05-2025
- Business
- Yahoo
Germany HNW Investors Wealth Management Report 2025: Comprehensive Analysis of the Investment Preferences of HNW Individuals
Understand Germany's HNW wealth market, including the investment preferences of HNW individuals. Develop and enhance your client targeting strategies using our data on HNW demographics and sources of wealth. Tailor your investment product portfolio to match current and future demand for different asset classes among HNW individuals. Dublin, May 23, 2025 (GLOBE NEWSWIRE) -- The "Germany Wealth Management: HNW Investors 2025" report has been added to report provides comprehensive analysis of the investment preferences of German HNW individuals. It profiles HNW investors in terms of their demographics; examines the allocation of HNW investors' portfolios; analyzes their propensity to invest offshore; and explores their product and service German HNW market is dominated by professional and high-earning males, but female HNWs and entrepreneurs also represent a lucrative target market for wealth managers. In a highly competitive market such as this, execution-only mandates have the highest demand, yet offering a multi-service proposition underpinned by the ability to offer sophisticated investments is crucial. A burgeoning appetite for robo-advice coupled with increasing demand for equities, inheritance planning, and environmental, social, and governance investment services provide the most significant growth opportunities for wealth Expats constitute 9.8% of the local HNW population. They represent an attractive target market thanks to their more complex service requirements. Robo-advice accounts for just 4% of the German HNW portfolio. The average German HNW investor offshores 36.2% of their wealth abroad; this proportion is expected to increase over the next 12 months. Key Topics Covered: 1. Demographics2. Expats3. Investment Style Preferences4. Asset Allocation Preferences5. Offshore Investment Preferences6. Products and Services7. AppendixCompanies Featured FERI Whitebox Hauck & Aufhauser Zeedin Landesbank Baden-Wurttemberg Deutsche Bank For more information about this report visit About is the world's leading source for international market research reports and market data. We provide you with the latest data on international and regional markets, key industries, the top companies, new products and the latest trends. CONTACT: CONTACT: Laura Wood,Senior Press Manager press@ For E.S.T Office Hours Call 1-917-300-0470 For U.S./ CAN Toll Free Call 1-800-526-8630 For GMT Office Hours Call +353-1-416-8900Error 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
