ASIC Issues First Formal Warnings to Finfluencers Over Unlicensed Financial Advice
The Australian Securities and Investments Commission (ASIC) has issued formal warning notices to four Australian social media influencers—known as finfluencers—for suspected unlicensed financial advice and potentially misleading promotional claims, including statements promising "guaranteed returns." This marks the first time ASIC has issued such notices since publishing its guidelines for online financial services in 2022.
Regulatory Action and Scope
ASIC stated that the influencers may be contravening financial services laws by operating without the required authorization. The warning notices advise recipients to review ASIC's guidance and seek independent legal advice.
In addition to the four warning notices, ASIC is currently reviewing several Australian Financial Services (AFS) licensees and their supervision of 15 finfluencers operating under those licenses. The regulator noted that unlicensed influencers may legally operate as authorized representatives of AFS licensees, but that licensees remain responsible and liable for the actions of their representatives.
ASIC Commissioner Alan Kirkland stated that finfluencer activity in Australia is "significant," and that the regulator is concerned when influencers encourage investment without proper licensing. He added that what consumers see online is shaped by algorithms designed to drive clicks and engagement, rather than to promote accurate information.
Legal Framework and Penalties
Providing unlicensed financial advice in Australia is a criminal offense. Penalties include up to five years in prison or a fine of up to $1 million. Kirkland noted that promises of "easy money" or "guaranteed returns" may constitute illegal conduct.
International Coordination
ASIC's actions coincide with the second Global Week of Action Against Unlawful Finfluencers, an initiative involving 17 national regulators. ASIC is cooperating with these international bodies as part of the enforcement effort.
Background and Consumer Trends
- ASIC's Gen Z Financial Behaviours Report, published in March 2025, found that 63% of Australians aged 18–28 use social media for financial information.
- Separate research from Moneysmart indicates that 56% of this age group trust financial information on social media, and 52% trust finfluencers.
Consumer Guidance
- Verify licensing: Consumers can check whether a person or business is licensed by using ASIC's professional registers search tool.
- Report misconduct: Suspected unlicensed finfluencer activity can be reported to ASIC online or by calling 1300 300 630.
Expert Commentary
Academics including RMIT's Angel Zhong and Dr. Dimitrios Sampasis have noted that finfluencers may fill a gap in financial education due to the cost or complexity of traditional financial advice, but have also raised concerns about financial literacy and scam risks.