Influencers in Australia are at risk to go jail for breaking rules. The Australian authority has warned that they need a license to give any financial advice.
The Australian Securities and Investments Commission (ASIC) shared a new information sheet where they claimed that influencers in Australia face up to five years in jail for breaking laws on financial advice.
According to ASIC 2021 survey report, 33% of the young generation age group 18 to 21-years follow financial influencers. The most interesting part is 64% of young people in Australia are highly motivated by financial influencers. These influencers have a grand impact on young people’s financial behavior.
ASIC commissioner Cathie Armour said, “Influencers who discuss financial products and services online comply with the financial services laws. If they don’t, they risk substantial penalties and put investors at risk.”
The famous financial advisor on social media Aleks Nikolic mentioned that the information sheet was useful to protect young people. Aleks said, “I think it’s some of their clearest and best comms they’ve ever put out, potentially ever.” She also said, “Obviously everyone will now madly scramble to become compliant, but that was the point.”
ASIC said about the financial product advice, ‘I’m going to share with you five long-term stocks that will do well and which you should buy and hold”, was probably financial product advice. But “you can save money each week by preparing your home-cooked lunches for work, instead of eating out”, was just a budgeting tip and unlikely to be financial product advice.”