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Licenced to shill

Have you ever heard of a “finfluencer”?

he catch-all term has been a label
Tliberally applied to social media influ-
encers that talk all things money, invest-
ing, markets and wealth.
The art of finfluencing commonly mani-
fests on social media platforms such as
TikTok, Instagram, YouTube and Twitter
where content creators spill all for their fol-
lowers on the best self-wealth apps, which
ASX companies are gaining speed on the
market and more innocuous topics such
as how to save more money every pay
cheque.
But following to a reminder by the Aus-
tralian Securities and Investment Commis-
sion in May, many of Australia’s top finflu-
encers quickly took a step away from the
industry.
“Information Sheet 269: Discussing fi-
nancial products and services online” dealt
a swift blow to the popular game when
ASIC clarified for finfluencers whether
content posted qualifies as legal or illegal.
The guidelines served as a reminder
that finfluencers could not recommend
ASX stocks to their followers, give financial
advice without a financial services licence,
or promote financial services like trading
apps via affiliate links which often net a
profit for the content creator.
“When you discuss financial products
and services online or promote affiliate
links, make sure you understand your legal
obligations,” the ASIC guideline warned
finfluencers. Flaunting the rules can net a
financial penalty or even jail time.
The info sheet caused a sharp pivot in
the finfluencing space. Some of Australia’s
top content creators such as Queenie Tan,
aka Invest With Queenie, have pivoted
what they post online.
Tan commands more than 240,000 fol-
lowers across YouTube, TikTok and Insta- Judith Fox
gram. Her previous YouTube videos have [spending] $50,000 just seems a bit ridicu-
dealt with topics such as profitable ideas lous to keep doing the exact same stuff
for businesses, which investments have that I’ve been doing anyway,” she said in emption, so they can talk about and give
made her large returns and comparing a TikTok. opinions on financial products and advice
cryptocurrency exchanges. At the time of “It would mean that I would have to con- with no backlash, which I find really inter-
print, Tan’s latest YouTube video was a sistently monetise this [my social media esting,” she said. “Influencers who don’t
vlog-style early morning routine. content] and it wouldn’t just be like a hobby focus on finances still seem to be allowed
Some finfluencers have been vocal on the side.” to be sponsored by major banks and invest-
about their reaction to the ASIC guideline, Etschmann has more than 120,000 fol- ment platforms which is, again, interesting.”
such as Natasha Etschmann who posts lowers across YouTube, TikTok, Instagram Meanwhile, Stockbrokers and Invest-
under the online handle Tashinvests. She and Twitter. She claims ASIC has been ment Advisors Association chief executive
is unsure where to take her business next. inconsistent, suggesting there’s different Judith Fox has welcomed the clarification,
“I’m still figuring it out. I’m looking into rules for organisations and individuals. stating it offers better protection for Austral-
getting licenced [as a financial advisor] but “Media companies have a media ex- ian consumers.

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