Finfluencers Under Scrutiny as Global Regulators Crack Down on Unlawful Advice and Misleading Claims

Australia’s corporate watchdog has issued warning notices to 18 social media influencers suspected of unlawfully promoting high-risk financial products and providing unlicensed financial advice as part of a global crackdown on unlawful finfluencers.

The Australian Securities and Investments Commission (ASIC) announced the action on Thursday, April 23, 2026, as part of a coordinated international effort involving nine market regulators from Australia, Canada, Hong Kong, Italy, the United Arab Emirates, and the United Kingdom.

ASIC Commissioner Alan Kirkland stated that the regulator’s primary concern involves influencers promoting products such as cryptocurrencies, leveraged derivatives, shares, and exchange-traded funds, particularly when they promise higher-than-average or guaranteed returns.

“That’s where there’s the greatest risk of harm,” Mr Kirkland said in an interview with The Nightly. “We see finfluencers spruiking investment products, promising higher-than-average or even guaranteed returns, which is an immediate red flag.”

In some cases, influencers have claimed that sophisticated technology, such as artificial intelligence, underpins their success, suggesting it can trade faster than humans to deliver unusually high returns.

The warning notices form part of the second Global Week of Action Against Unlawful Finfluencers, a initiative led by the Financial Conduct Authority (FCA) in the United Kingdom.

During the initiative, the FCA reported making three arrests with support from the City of London Police, authorising criminal proceedings against three individuals, conducting four interviews with finfluencers, issuing seven cease and desist letters, and sending out 50 warning alerts.

These actions are expected to result in over 650 takedown requests on social media platforms and the removal of more than 50 websites operated by unauthorised finfluencers.

Steve Smart, joint executive director of enforcement and market oversight at the FCA, emphasised that finfluencers must act responsibly and only promote financial products where they are authorised to do so.

“Our message to finfluencers is loud and clear. They must act responsibly and only promote financial products where they are authorised to do so – or face the consequences,” Mr Smart said.

ASIC has also launched reviews into several Australian Financial Services licensees regarding how they supervise 15 finfluencers operating under their licences.

The regulator noted that an increasing number of young Australians are turning to social media for investment advice, heightening concerns about exposure to misleading or high-risk financial promotions.