FSCA to regulate social media financial influencers in South Africa
The initiative is for the purpose of curbing the growing misleading influence of finfluencers on Gen Z investors in South Africa.
FSCA to regulate social media financial influencers in South Africa
The Financial Sector Conduct Authority (FSCA) in South Africa has announced that it will closely monitor the activities of financial influencers (finfluencers) on social media platforms to protect investors, particularly young people who engage with this content. Commencing from next year, the move comes as research by CFA Institute highlights the growing influence of finfluencers on Gen Z investors and FSCA's latest annual regulatory report , often lacking sufficient disclosures and regulatory compliance. As the report partly read, "social media influencers have been shown to wield significant influence over consumer behaviour through social media content." The FSCA's crackdown aims to address the challenges posed by finfluencers, who may inadvertently provide financial advice subject to regulatory scrutiny or violate applicable laws. In other words, the agency is working to take down the financial advice that potentially mislead consumers. The regulator will work with s…
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