ASIC cracks down on ‘finfluencers’ | Australian Markets

The Australian Securities and Investments Commission (ASIC) has cracked down on media “finfluencers” asserting it has despatched warning notices to 18 people for unlawfully selling high risk financial merchandise and offering unlicensed advice.

ASIC stated that it had undertaken the crackdown as half of a joint method by regulators from the UK, UAE, Italy, Hong Kong and Canada.

Together, the 9 regulators used a mixture of regulatory and enforcement powers together with arrests, warning notices, web site takedowns, instructional schemes with authorised finfluencers and shopper awareness packages to put unauthorised finfluencers on discover and warn customers of the dangers of unauthorised and deceptive finfluencer content material.

Commenting on the transfer, ASIC Commissioner Alan Kirkland stated regulators throughout the world had  joined forces to disrupt illegal finfluencer exercise.

“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,” he stated.

ASIC’s present issues lie with finfluencers positioning themselves as so-called trading consultants, who’re offering unauthorised financial product advice and selling high-risk, advanced investment merchandise that may trigger actual shopper hurt, akin to contracts for distinction (CFDs) and over-the-counter (OTC) by-product merchandise.

The regulator stated their social media content material is commonly accompanied by deceptive or misleading representations concerning the prospects of success from the merchandise or trading methods they promote, sharing photos of lavish existence, sportscars and different luxurious items.

“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,” Kirkland stated.