ASIC Warns 18 Unlicensed Finfluencers Amid Global Crackdown

The Australian Securities and Investments Commission (ASIC), as part of a Global Week of Action alongside eight other international regulators, has issued warning notices to 18 social media 'finfluencers' suspected of unlawfully promoting high-risk financial products and providing unlicensed financial advice. ASIC's concerns focus on finfluencers posing as trading experts, promoting complex and risky products such as Contracts for Difference (CFDs) and over-the-counter derivatives, often using misleading representations and showcasing lavish lifestyles to attract consumers. The crackdown involved coordinated efforts including arrests, website takedowns, and educational initiatives to warn consumers about the risks of unauthorised financial advice online. ASIC Commissioner Alan Kirkland emphasized the need for consumers to verify influencers' credentials and reminded that popularity does not equate to credibility. Since the issuance of ASIC's INFO Sheet 269 in 2022, there has been a notable decline in unauthorised financial promotions, and financial services licensees have improved their due diligence when engaging influencers. This global regulatory collaboration aims to protect investors from misleading online financial advice and uphold market integrity.