ASIC has recently issued warnings to 18 social media
influencers-commonly known as "finfluencers"-for
providing unlicensed financial advice and promoting high-risk
financial products without appropriate licensing. These actions
were part of a coordinated Global Week of Action Against Unlawful
Finfluencers, involving nine international regulators, including
those from Canada, Hong Kong, Italy, the United Arab Emirates, and
the United Kingdom.
ASIC is keeping a close eye on social media influencers
especially where they suspect they are breaching of
Corporations Act in relation to unlicensed conduct or
misleading and deceptive conduct.
Section 911A of the Corporations Act provides that it is an
offence to carry on a financial service without holding an
Australian Financial Services Licence (AFSL) unless you are
authorised as a representative or an exemption applies. This
provision imposes significant civil and criminal penalties,
including up to five years'
