ASIC Expands Finfluencer Crackdown with Warnings and Licensee Review

Australias securities regulator has stepped up its action against unlawful financial promotion on social media, issuing warning notices to four finfluencers and starting a review of Australian Financial Services licensees linked to 15 more influencers operating under their licences.

The latest action forms part of the second Global Week of Action Against Unlawful Finfluencers, involving 17 regulators across multiple regions. ASIC said the four warning notices relate to suspected unlicensed financial adviceand possible misleading or deceptive conduct, including content that promoted guaranteed returns.

Licensees also come under review

Alongside the warning notices, ASIC said it has begun examining how several licensed firms supervise finfluencers who act under their authorisation. The regulator said responsibility does not stop with the content creator: where an influencer operates as an authorised representative, the supervising licensee remains accountable for oversight and any breaches.

ASIC said it has contacted and met with three AFS licensees as part of that review. The regulator expects firms that use finfluencers to have documented supervision arrangements in place and to keep records showing that those arrangements are active, rather than nominal.

Social media influence remains a regulatory focus

The move comes as ASIC continues to highlight the role of social media in shaping financial decisions, especially among younger users. ASIC cited Moneysmart research showing that 63% of Gen Z Australians rely on social media for financial information, while 56% said they somewhat or completely trust financial information seen there and 52% said the same about finfluencers.

ASIC said its surveillance has focused on influencers discussing products such as leveraged derivatives, shares, and ETFs. It also repeated that anyone giving financial product advice in Australia must either hold an AFS licence or act as an authorised representative.

Part of a broader international push

ASIC described the latest step as part of a coordinated international effort to disrupt unlawful online financial promotion before consumer harm occurs. The regulator also said that action taken last year had already led to some changes, including influencers becoming authorised representatives, modifying content, or stopping efforts to target Australian consumers.

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