The Financial Markets Authority has released a new guide for social media influences, bloggers and people who want to discuss money matters online so they don’t get in trouble.
The FMA warned that talking about money or investing can sometimes cross the line to providing financial advice, which is tightly regulated in New Zealand.
New laws about financial advice took effect in March this year, which say people must hold a Financial Advice Provider licence when giving regulated financial advice to everyday consumers. Those misrepresenting themselves as financial advisers are liable for a penalty up to $200,000.
The FMA said it was OK to talk about financial matters online, provided it remains general. That means the likes of unlicensed online commentators and influencers can’t recommend particular products or tell people what to do, which could cross the line into giving regulated advice.
“When you start getting into recommending particular products, like specific funds, stocks or insurance, or telling individuals what to do, that’s probably regulated financial advice,” FMA chief executive Rob Everett said.
It’s also OK to describe a financial product’s features and terms and conditions. But, unlicensed people can’t make recommendations.
“We’re also reminding influencers to be wary of promoting high risk products like cryptocurrency and derivatives. Not only do these assets have a high risk of people losing money, they’re also often used as bait in scams,” Everett said.
People are also encouraged to moderate comments on posts and follow Advertising Standards . That means influencers must ensure they make clear which parts of their content is an ad and what is not.
SHARE ME