ASIC, Global Regulators Crack Down on Unlawful 'Finfluencers'
ASIC announced a coordinated global crackdown on unlawful financial social media influencers.
Why it matters: This signals a new era of cross-border regulatory enforcement targeting financial content online. Legal and compliance teams in financial services must respond swiftly to oversight demands and evolving global standards.
- ASIC acted with 16 other global regulators as part of the Global Week of Action Against Unlawful Finfluencers.
- Four suspected unlicensed finfluencers received warning notices for misleading conduct.
- ASIC is reviewing multiple AFS licensees supervising 15 finfluencers.
- Licensees are expected to actively supervise online representatives—not rely on 'set-and-forget' compliance.
The Australian Securities and Investments Commission (ASIC) has joined forces with 16 peers globally to tackle unlawful activity by financial social media influencers, or 'finfluencers.' This marks the second year of cross-border action during the Global Week of Action Against Unlawful Finfluencers, spanning regulators in Asia, Europe, North America, South America, and the Middle East.
- ASIC issued warning notices to four 'finfluencers' suspected of providing unlicensed financial advice or engaging in deceptive conduct—including claims of guaranteed returns.
- A review has begun into several Australian Financial Services (AFS) licensees and their supervision of 15 finfluencers operating under their authority.
Speaking on the initiative, ASIC Commissioner Alan Kirkland said, "Unlawful finfluencer activity doesn’t respect borders, which is why regulators are taking strong action together for a second year in a row." He also reminded firms: "Licensees remain responsible and liable for what their representatives say and do online. We expect active supervision, not a set-and-forget approach."
Driving urgency are recent Moneysmart findings showing 63% of Gen Z Australians rely on social media for financial insight, with 56% trusting the financial content they see and 52% specifically trusting finfluencers. This reliance has made social media a prime channel for financial promotions, some of which cross into regulated advice or misleading marketing.
Penalties in Australia for unlicensed finfluencer activity are severe—up to five years' jail or multimillion-dollar fines. Global cooperation among regulators signals ongoing, heightened scrutiny of online financial content and the firms who supervise it.
By the numbers:
- 63% — Gen Z Australians relying on social media for financial information
- 56% — Gen Z somewhat or completely trust financial content on social media
- Up to five years — Maximum prison term for unlicensed financial advice by finfluencers in Australia