FSCA cracking down on unlicensed 'finfluencers'

CAPE TOWN - The Financial Sector Conduct Authority (FSCA) is cracking down on unlicensed "finfluencers", or financial influencers.

Social media personalities offering financial tips and investment advice without proper authorisation have become a fast-growing trend.

The content is being posted on platforms like TikTok, Instagram, and YouTube, reaching thousands, sometimes millions, of followers. 

"There are many different definitions for finfluencers, but we are basically referring to influencers that overstep that line and start providing financial advice and it's for different reasons. The reason why we are interested in this is because this is a phenomenon that's growing,” said the FSCA's Gerhard van Deventer.

Van Deventer said this was an international problem and not unique to South Africa.

"There is international concern and the reason why the concern exists is because, ideally, you should get your financial advice from an authorised and a qualified financial advisor who has got the skills, the qualifications and the experience."

Van Deventer said nobody can afford to lose money, especially in South Africa's current financial climate.

"You should not be getting your financial advice from somebody who is popular. I am not saying that they don't always know what they are talking about, but there is no guarantee that finfluencers actually have the required knowledge or will do the required due diligence, etc, to provide proper advice."