In Regulatory Wrap for the week to June 20, Kathryn Fallah covers the international crackdown on financial influencers, also known as “finfluencers.”
In this week’s Regulatory Wrap, we discuss fines from multiple regulators across the globe, such as the Financial Conduct Authority (FCA), Financial Industry Regulatory Authority (FINRA), and Australian Securities and Investments Commission (ASIC), for illegal financial promotion by finfluencers.
1. FINRA fined a NY-based brokerage $350,000 for violating the Securities and Exchange Commission’s Rule 17a-4, as well as various FINRA rules, by failing to monitor social media statements from finfluencers
2. Statements from the brokerage’s finfluencers included misleading information, which failed to comply with “fair and balanced requirements” listed in FINRA rules 2210 and 2010
3. The FCA requested the deletion of 650 social posts and removal of 50 websites to protect consumers from misleading statements from finfluencers
4. ASIC issued warning notices to 18 finfluencers for unlawfully promoting high-risk products and sharing unauthorized financial advice
5. Steve Smart, the FCA’s Joint Executive of Enforcement and Market Oversight, advised finfluencers to “check the products they promote to ensure they’re not breaking the law and putting…livelihoods…at risk”
This episode is brought to you by Global Relay’s Director of Regulatory Intelligence, Kathryn Fallah.
With regulators across regions cracking down on finfluencer risk, it’s critical to ensure proper retention and monitoring of social media and marketing communications across channels.
