Regulatory Alerts2022-10-31
The Pitfalls of Finfluencers: AFM Exploration of Investor Protection Rules on Social Media
The Dutch Authority for the Financial Markets (AFM) issued this December 2021 report exploring the practices of approximately 150 financial influencers ('finfluencers') and identifying significant risks to investor protection on social media. The regulator found that finfluencers frequently provide unlicensed investment advice, lack sufficient due diligence in recommendations, promote high-risk products, and collaborate with unregulated entities. Furthermore, the AFM highlighted that many finfluencers violate the Dutch commission ban by receiving payments for introducing clients to financial firms without adequate transparency.
Share