Rethinking the Regulation of Financial Influencers

The growth of social media has led to an unprece­dent­ed rise in finan­cial influ­encers, so-called fin­flu­encers, who share invest­ment ideas and opin­ions with a glob­al audi­ence, even if they are not qual­i­fied or licensed to pro­vide finan­cial advice. This can be par­tic­u­lar­ly dan­ger­ous for retail investors with low lev­els of finan­cial lit­er­a­cy. The reg­u­la­tion of finan­cial influ­encers is a com­plex and mul­ti­fac­eted issue that demands a com­pre­hen­sive approach; the cur­rent reg­u­la­to­ry frame­work may not be adequate.