Clampdown on 'fin-influencers'

ADVICE: CONSUMER EDUCATION KEY, SAYS EXPERT

- Brian Sokutu

A probe by the Financial Sector Conduct Authority (FSCA), aimed at clamping down on the rise in unregulated "influencers", has drawn support and criticism.

Experts are conceding that there is a need for consumer education to be ramped up in South Africa in the fight against questionable financial advice on social media platforms.

In a warning to "financial influencers", FSCA commissioner Unathi Kamlana posted on X: "The Financial Sector Conduct Authority is confronting the rise of unregulated financial influencers or 'fininfluencers', who offer advice on social media platforms.

"The FSCA is investigating whether these influencers are operating without proper authorisation - highlighting the risks of seeking financial guidance online.

"The trend reflects a growing reliance on social media for investment advice, often from voices lacking the credentials of qualified financial planners.