ASIC has published an information sheet (INFO 269) about discussing financial products and services online which sets out how the financial services laws apply to ‘finfluencers’ and AFS licensees who use them. ‘Finfluencer’ is the common term for someone engaged to promote financial products through social media platforms such as Facebook, YouTube, Instagram, and TikTok.
Partner Elliott Stumm warns AFS licensees who use finfluencers may be liable for their misconduct and need to take precautions.
AFS licensees who use finfluencers may be liable for any misconduct engaged in by them and need to take precautions such as:
The Corporations Act imposes significant penalties, including up to five years’ imprisonment for an individual and financial penalties into the millions of dollars for a corporation.
The law also prohibits conduct that is misleading or deceptive, or is likely to mislead or deceive, in relation to financial products or services. A finfluencer does not need to be licensed to breach the misleading or deceptive provisions.
Contact our team if you are unsure of your obligations.