Austrian FMA Initiates Dialogue with "Finfluencers"

​Austria's Finanzmarktaufsicht (FMA), the financial market supervisory authority, has announced that it is beginning a dialogue with "Finfluencers" - social media influencers who focus on financial topics - in a move that contrasts with the more punitive approaches taken by some other global regulators.

The FMA acknowledges the pervasive presence of Finfluencers on social media, noting their varied content, from general financial literacy to specific investment recommendations. While recognizing that Finfluencers can provide accessible financial information, the FMA also highlighted associated risks for investors. These risks include the dissemination of incorrect or misleading information, recommendations driven by undisclosed self-interest, frivolous advice on complex and risky financial products, and failures to disclose conflicts of interest, such as paid promotions. The FMA also pointed to recent international efforts, including those led by the UK's Financial Conduct Authority (FCA), to halt fraudulent activities by individuals posing as Finfluencers.

To address these issues, the Austrian FMA invited Austrian Finfluencers to Vienna for the first time to engage in direct dialogue. The meeting, which included approximately 20 registered Finfluencers and FMA experts, focused on the legal framework applicable to social media channels, particularly in areas of investment advice and recommendations.

A key objective is to raise Finfluencers' awareness of these regulations to help prevent unintentional breaches. The FMA also indicated it will use input from this event and market observations to assess whether the current legal basis adequately covers Finfluencers and their influence on retail investors and other market participants.

This approach differs from regulators in other countries; as Fazzaco reported earlier, Australia's ASIC recently issued warnings to 18 Finfluencers, while the UK FCA conducted arrests and issued cease-and-desist letters as part of a crackdown. Conversely, the UAE's SCA launched the region's first Finfluencer license last month​.