Key Points
• Financial influencers (aka finfluencers) who use social media to provide financial advice must be licensed and regulated by the Monetary Authority of Singapore (‘MAS’). Those employed by financial institutions (FIs) to advertise their products or services are expected to present information in a clear and balanced way that highlights key features and risks.
• Any individual who is remunerated for making a recommendation or expressing an opinion on the buying, selling or holding of investment products will be considered as providing financial advice. Even if he/she is not remunerated, he will be considered as providing financial advice if he makes such recommendations or expressions regularly.
• The growing popularity of finfluencers has raised concerns about the risks they may pose to consumers who follow them for advice despite these finfluencers stating that their words should not be construed as advice.
Implications
• Finfluencers can use social media platforms to promote products and services due to their sizeable fan/follower base. However, if the finfluencer is not trained and licensed, there are dangers of misrepresentation, mis-selling, and unbalanced/biased views being conveyed to the public; and they do not have the duty of care should financial losses be incurred if their followers heed their advice.
• Licensed financial advisors are akin to licensed medical practitioners. Just like how we would go to a licensed doctor to seek medical help when we are unwell/injured, we should always go to a licensed financial advisor to seek proper financial guidance to protect/grow our wealth. Doing otherwise by seeking financial advice from finfluencers who are not regulated by the MAS, might cause significant damage to your pockets and there may be limited avenue to seek redress for losses.
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Information accurate as at 13 November 2024. Representing Legacy FA Pte Ltd. This advertisement has not been reviewed by the Monetary Authority of Singapore.
LFA-MM/TN/250115A