ASIC Reminds Social Media Influencers and Licensees to Comply with Financial Services Laws

ASIC has published an information sheet about discussing financial products and services online. It outlines how the law applies to social media influencers, and the licensees who use them.

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ASIC Commissioner Cathie Armour said:"The way investors access information is changing. It is crucial that influencers who discuss financial products and services online comply with the financial services laws. If they don't, they risk substantial penalties and put investors at risk."

In 2021, the ASIC young people and money survey found that 33% of 18-21 year olds follow at least one financial influencer on social media. The survey found a further 64% of young people reported changing at least one of their financial behaviours as a result of following a financial influencer.

INFO 269 Discussing financial products and services online:

• ​highlights activities where influencers may contravene the law if they are unaware of the legal requirements, using a series of practical examples on:

  -financial product advice

  -dealing by arranging

  -misleading or deceptive conduct

• ​explains issues for influencers to consider including:

  -whether an AFS licence is needed

  -being familiar with relevant regulatory guidance

  -doing their due diligence on people who are paying them (including non-monetary benefits)

• ​reminds AFS licensees who use influencers to:

• ​do their due diligence

• ​have appropriate risk management systems and monitoring processes

• ​have sufficient compliance resourcing to monitor the influencers they use

• ​consider their design and distribution obligations.

"ASIC monitors select online financial discussion by influencers who feature or promote financial products for misleading or deceptive representations or unlicensed advice or dealing. If we see harm occurring, we will take action to enforce the law,"concluded Ms Armour.