Fin-Influencers are on ASIC’s Watchlist
By Gary Larson
The rise of the Finfluencer has become a growing concern amongst investors for some time. The increasingly growing space which generally involves loose no financial advice disclaimers has seen some influencers make extraordinary incomes merely by promoting online financial products.
Rarely has this been seen greater than that in the Cryptocurrency space where the influx of influencers using their unsuspecting client base to push ‘pump and dumps’ has reached all time highs. Youtube channels such as Coffeezillas have been at the forefront of exposing some of these gross misrepresentations of ‘not financial advice.
Sadly this has become common place in the Australian market too with finally ASIC looking to step in. According to a recent Australian Financial Review article “It issued guidance explaining that any finfluencers sharing hyperlinks to third-party platforms on which financial products such as shares or managed funds are traded could be considered “dealing by arranging” and therefore require a licence to undertake.”
This essentially means the entire affiliate industry could be in for a major shake up. Not all Finfluencers are ‘bad’ with some clearly dedicated to providing key information to assist with understanding the investing landscape. Sadly, the space has been tarnished by those set out to earn quick buck.