Australians’ growing dependence on social media for money guidance is colliding with tougher regulatory scrutiny. The Australian Securities and Investments Commission (ASIC) has taken note, intensifying its crackdown on unlawful finfluencers and reminding licensees they are on the hook for online misconduct.
ASIC has issued warning notices to four finfluencers suspected of providing unlicensed financial advice or engaging in misleading or deceptive conduct, including promoting “guaranteed returns”. The intervention is designed to disrupt unlawful promotion before consumers suffer financial harm, with ASIC’s surveillance targeting content that pushes leveraged derivatives, shares and exchange-traded funds.
The action sits within the second Global Week of Action Against Unlawful Finfluencers, involving 17 regulators across multiple regions.
“Unlawful finfluencer activity doesn’t respect borders, which is why regulators are taking strong action together for a second year in a row,” said Commissioner Alan Kirkland.
ASIC’s Gen Z research shows almost two‑thirds of young Australians rely on social media for financial information, and many place “high levels of trust” in money tips from TikTok, Instagram, finfluencers and even AI tools. That dynamic raises the risk that clients walk into broker meetings already committed to high-risk strategies that may not align with their long-term home ownership goals.
For the first time since releasing INFO 269 in 2022, ASIC is actively reminding Australian Financial Services (AFS) licensees of their supervisory obligations when they authorise finfluencers. Under these arrangements, unlicensed finfluencers can operate as authorised representatives, but responsibility for supervision – and liability for breaches – rests with the licensee.
ASIC has contacted three AFS licensees to review how they supervise 15 finfluencers operating under their licences, and expects documented arrangements and records of oversight.
“Licensees remain responsible and liable for what their representatives say and do online,” Kirkland said. “We expect active supervision, not a set and forget approach.”
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