Giving financial advice as influencer in Australia? Follow rules or face prison
Story highlights
Around 33% people from the age group of 18 to 21 years follow financial influencers, as per a 2021 ASIC survey. Not just this, it also found that 64% young people in Australia altered a financial behaviour due to an influencer
Giving financial advice can be risky in Australia. Well, we are not kidding, it's absolutely true.
If rules are not followed while giving financial advice, an influencer can face up to five years in jail in Australia, a new information sheet has warned.
There is a need to have a licence to give such advice, said the Australian Securities and Investments Commission (ASIC).
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Around 33% people from the age group of 18 to 21 years follow financial influencers, as per a 2021 ASIC survey.
Not just this, it also found that 64% young people in Australia altered a financial behaviour due to an influencer.
It was crucial that "influencers who discuss financial products and services online comply with the financial services laws. If they don't, they risk substantial penalties and put investors at risk," said ASIC commissioner Cathie Armour.
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Aleks Nikolic, who posts about financial investment on several social media platforms but dislikes the label influencer, told the Guardian that the information sheet was very useful.
"I think it's some of their clearest and best comms they've ever put out, potentially ever. Obviously, everyone will now madly scramble to become compliant, but that was the point," Nikolic said.
(With inputs from agencies)
