The Securities and Futures Commission (SFC) said it is joining regulators across the globe to curb activities of unlawful financial influencers (finfluencers) who are putting millions of social media users at risk by touting financial products or services illegally.
This initiative involves regulators using a combination of supervisory and enforcement powers to disrupt illegal activities of finfluencers, coupled with educational schemes and consumer awareness programs to remind investors the risk of investing after encountering misleading content from finfluencers, the market watchdog said in a statement on Friday.
The SFC has undertaken a broad array of enforcement actions against unlawful finfluencer activities, including suspending licenses, the statement said, adding that its ongoing “Don't be Sucker” anti-scam publicity campaign is further amplified through mass media advertisements and a feature story on TV in May and June.
The regulator said it will launch more targeted communications to build up anti-scam awareness and thus resilience of the investing public in the coming months.
“Investors should serve as their own first line of defense by verifying the regulatory status and trustworthiness of the finfluencers, critically evaluating any investment ideas from them, and conducting thorough due diligence on any prospective investments before committing,” said Julia Leung Fung-yee, the SFC’s chief executive and chair of the International Organization of Securities Commissions Asia-Pacific regional committee.
STAFF REPORTER
