The International Organization of Securities Commissions (IOSCO) has published three final reports on finfluencers, online imitative trading practices and digital engagement practices as the third wave of its Roadmap for Retail Investor Online Safety. The reports respond to risks to retail investors linked to digital marketing and social media, including fraud, excessive risk taking and misinformation, and flag an increasing intersection between finfluencer activity, copy or mirror or social trading and platform gamification that can blur the boundary between regulated investment advice and general financial information. Across the three topics, IOSCO sets out Good Practices that regulators could consider, alongside expectations for market intermediaries and, where relevant, finfluencers. The finfluencers report maps the evolving landscape and existing regulatory approaches, identifies potential gaps in coverage for unregistered individuals influencing retail investors without professional qualifications or oversight, and proposes Good Practices aimed at improving transparency and accountability. The online imitative trading report highlights the potential for harm from automated strategies where retail investors may not understand the implications of imitating trades without active monitoring, including risks of misalignment with financial circumstances and risk tolerance and the potential for significant losses where lead traders pursue high-risk strategies or disclosures on risks and costs are inadequate, and it underscores the role of investor education. The digital engagement practices report reviews common DEP tools used by intermediaries, identifies regulatory challenges and gaps around their influence on retail investor behaviour, and calls for DEP-enabled communications of advice or recommendations not to prioritise intermediary interests over those of retail investors, supported by clear, accurate and comprehensive disclosures.

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