Australian Securities & Investments Commission targets unlawful finfluencers with four warning notices and review of AFS licensee supervision

The Australian Securities & Investments Commission has stepped up its crackdown on unlawful social media “finfluencers” as part of the second Global Week of Action Against Unlawful Finfluencers, working with 16 other regulators. The package includes warning notices to four finfluencers and a review of how Australian Financial Services (AFS) licensees supervise finfluencers operating under their licences, against a backdrop of rising reliance on social media for financial information among younger Australians. The warning notices relate to suspected unlicensed financial advice and potentially misleading or deceptive conduct, including promotion of purported guaranteed returns. Surveillance focused on finfluencers targeting Australian investors and discussing leveraged derivatives, shares and exchange-traded funds. ASIC has also contacted and met with three AFS licensees to review their supervision of 15 finfluencers acting as authorised representatives, reminding licensees for the first time since Information Sheet 269 (2022) that responsibility and liability for representatives’ online conduct remains with the licensee, and that adequate, documented, active supervision and record-keeping are expected. ASIC flagged ongoing monitoring of social media and the prospect of enforcement action where finfluencer conduct or licensee supervision failures place consumers at risk, and reiterated that consumers can check whether a person or business is licensed or authorised using ASIC’s professional registers.