If your favourite finfluencer is promising Lambos, passive income, and guaranteed returns before breakfast, ASIC may be about to ruin their content plan.

ASIC, which is the Australian Securities and Investment Commission, has joined forces with 16 international agencies in a global crackdown on unlawful social media influencers, targeting creators suspected of sharing unlicensed financial advice or posting misleading content.

So far, ASIC has issued warning notices to four finfluencers accused of operating without a licence or making questionable claims, including the classic “guaranteed returns” line, which, in finance, is usually code for “absolutely not guaranteed.”

ASIC is also reviewing several Australian Financial Services (AFS) licensees and how they supervise 15 finfluencers operating under their licences.

Why now? 

Because social media is increasingly where young Australians get money advice, according to Moneysmart, 63% of Gen Z Aussies use social media for financial information, and more than half trust what they see.

ASIC Commissioner Alan Kirkland said algorithms reward clicks and engagement, not accuracy of information, meaning flashy content can travel faster than good advice.

The message is clear: if someone online is promising easy money, guaranteed returns, or a secret strategy “banks don’t want you to know,” it might be time to scroll on or dig deeper and talk to your broker, accountants, or financial planner. 

Before taking financial advice from social media, Australians are urged to check whether the person is actually licensed.

Because followers are nice. Financial losses are not as nice!