Influencers Beware: FMA Releases Guide to Talking About Money Online | 1 NEWS
The AutoritÃ© des marchÃ©s financiers has published a new guide for social media influences, bloggers, and people who want to discuss money matters online so they don’t get into trouble.
Image file. Source: istock.com
The FMA has warned that talking about money or investing can sometimes go beyond the limit of providing financial advice, which is tightly regulated in New Zealand.
New financial advice laws came into effect in March this year, which stipulate that people must be licensed as a financial advice provider when giving regulated financial advice to ordinary consumers. Those who pose as financial advisers can be fined up to $ 200,000.
The FMA has said it is okay to talk about financial matters online, as long as it remains general. This means that unlicensed online commentators and influencers can’t recommend particular products or tell people what to do, which could cross the line by giving regulated advice.
âWhen you start recommending particular products, like specific funds, stocks, or insurance, or telling individuals what to do, it’s probably regulated financial advice,â said FMA CEO Rob. Everett.
It is also acceptable to describe the characteristics and terms and conditions of a financial product. But, unlicensed people cannot make recommendations.
âWe also remind influencers to be wary of promoting high-risk products like cryptocurrency and derivatives. Not only do these assets pose a high risk of losing money, they are also often used as bait in scams, âEverett said.
People are also encouraged to moderate comments on posts and follow. Advertising standards. This means that influencers need to make sure they make it clear which parts of their content is an ad and what isn’t.