The Australian Securities and Investments Commission (ASIC) has issued compliance warnings to 18 local social media personalities accused of promoting financial products without the necessary licensing.
The corporate regulator acted as part of a joint international enforcement campaign targeting so-called “finfluencers” who are allegedly providing investment recommendations outside the legal framework.
The initiative – coordinated with regulators from the UK, UAE, Italy, Hong Kong, and four Canadian provinces – saw global authorities execute a series of interventions, including content takedowns, arrests, and public education campaigns.
The measures were designed to raise awareness of the risks posed by unlicensed financial commentary, particularly on high-risk products such as contracts for difference (CFDs) and over-the-counter derivatives.
ASIC commissioner Alan Kirkland said the collaborative effort was intended to reduce unlawful activity online.
“It’s important that consumers separate fun from fact when it comes to finfluencer content. Popularity doesn’t equal credibility. Check their credentials, and whether they’re licensed or authorised, before checking your money out,” he said.
Kirkland noted that after ASIC published its 2022 guidance (INFO 269), there was a visible reduction in unlicensed promotional activity in Australia, as some content creators either adjusted their messaging or obtained proper accreditation.
Additionally, many licensed entities reportedly enhanced their oversight of influencer engagements to meet compliance standards.
ASIC continues to monitor social media activity for potential breaches and encourages consumers to verify an influencer's credentials through its online professional registers.
According to Moneysmart data, 41% of young Australians seek financial insights via social media platforms.
“Australia’s financial services laws protect investors and promote market integrity. They set minimum requirements and provide important protections for investors if something goes wrong. If you spruik or discuss financial products and services online, you need to carefully consider how the law applies to you and seek legal advice if you are unsure,” Kirkland said.
In a separate enforcement update, ASIC released the findings of a follow-up assessment on home insurance claims handling linked to the 2022 flood events.
The review evaluated the responses of seven insurers to earlier recommendations and identified inconsistent monitoring of independent experts such as engineers and hydrologists.
While some improvements were observed in the oversight of building contractors, ASIC said that reports from third-party specialists often went unreviewed post-decision.
In many instances, claims staff without technical training were responsible for assessing expert conclusions, raising concerns about the accuracy and fairness of outcomes.
