Discussing financial products and services online ASIC
Discussing financial products and services online
This is information sheet 269 (INFO269). The information seats are targeting social media influencers that discuss online financial products and services. This information sheet 269 describes how financial services are applied.
INFO269 is also for the Australian financial service (AFS) license holder using influencers. You may be responsible for the improper acts of the influencer, so you need to be aware of the duty.
You need to make sure you are operating within the law
The Financial Service Law protects investors and promotes the soundness of the market. The Financial Service Law sets minimal requirements and plays an important role in protecting investors in the event of any problem.
ASIC provides misleading descriptions, deceptive descriptions, or a financial service without being approved on the financial discussions online by influential people who introduce financial products and promote sales. We are monitoring whether or not it is. Unless it is approved as an AFS license holder's agent or exemption, it is a crime based on the 2001 Corporate Law (Corporations Act). The Companies Act has a large penalties for individuals, including up to five years of prohibition and a penalty of millions of dollars.
ASIC shall forcibly execute if it is suitable for public interests.
For more information about penalties, please refer to www. Asic. Gov. Au/penalties.
Influencers
If you explain financial products and services online or advertise affiliate links, make sure you understand the legal obligations including:
- We arrange your followers to provide advice on financial products or handle financial products. In the case of a financial service industry, you must hold AFS license (exempt or approve of providing these services as an agent of other people who have AFS licenses). Otherwise, it may violate the license requirements based on the law.
- The content is accurate and balanced. If an online post is misleading, it may violate the law.
If you have any questions about your duty, ask for a legal advice.
The following case studies were created to help these issues, but not all. It is important to consider the overall impression and situation of the content.
Influencer case studies
Financial product advice
Law Financial product advice is a recommendation or statement of opinion that is intended, or could reasonably be expected to influence, a person making a decision about a financial product.
You can share factual information that describes the features and terms of a financial product (or class of financial products) without giving financial product advice. However, if you present factual information in a way that recommends that someone should (or should not) invest in that product or class of products, you are giving unauthorized financial product advice and may be violating the law.
If you are an influencer who receives incentives or compensation for comments related to financial products, you are more likely to be giving financial product advice because it suggests you intend to influence the public.
"Here are five long-term stocks that should do well and are worth buying and holding"
With the intention of influencing someone's decision to buy certain financial products.
He is offering opinions about those products.
That is likely financial product advice.
"ETFs guarantee positive returns"
Providing an opinion that a class of products has guaranteed positive returns.
That is likely financial product advice.
That is likely misleading - see "Misleading or deceptive" below.
"You can invest by buying shares, which means you invest in a company, have the ability to vote on the company's management, and potentially earn dividends. ETFs, on the other hand, can track different asset classes or individual assets that may provide returns, but the ETF provider holds the shares or assets on behalf of the fund members.
A description of different types of financial products, with no implied recommendation that one is better than the other.
Unlikely to be financial product advice.
"Preparing home-cooked meals for work instead of eating out can save you money each week."
A money-saving or budgeting tip that doesn't involve a financial product.
This does not seem to be financial product advice.
Dealing by arranging
Legal Legal: Arranging financial product transactions, such as buying and selling financial products, is a financial service. Whether you broker a financial product transaction for someone depends on the level of your involvement in the transaction.
Transfer your followers a link to access the AFS License trading platform for trading financial products. This is a unique link that cannot be accessed elsewhere. You receive a reward from Licensee every time you are clicked. Even those who have accessed the link will buy products and benefit from your unique link.
You will actively participate in the transaction.
Your unique link will give you a profit and give your followers add value.
This is likely to be dealt with by reconciliation.
Provides the name and details of AFS Licensee, which has a platform for trading financial products.
It is not involved in subsequent transactions.
This is unlikely to be dealt with by a settlement.
Misleading or deceptive
Law: Law does prohibit acts that are misleading, deceived, or misleading, or misleading in connection with financial products or services. There is no need for a license to violate or deceive provisions.
The statement you make must be true, accurate, and verified. If you make predictions, such as future performance and risk levels, there must be enough reason to support that prediction. It is not a matter of whether or not there is an intention to misunderstand a person, but whether your post is actually misleading or misleading when your post is displayed. Is important (not the reader you want).
"If you hold this strain for a long time, you will get a big return and deposit money in a bank!"
It is unlikely that the claim of a large return will be proven.
There is no explanation or emphasis on the potential risk of the product.
It gives the impression that the product is safe, but this may not be true.
This is likely to be misleading.
"This derivative transaction is a ris k-free way to make a quick profit on a side job. "
No matter how much you can do in the document, "no risk" transactions are likely to be misleading.
This is likely to be misleading.
"ETF provides excellent dispersion between different asset classes, but there is still the risk that the market and sector in which ETF tracks will fall."
Risks and benefits are described in similar words.
This is unlikely to be misleading.
Issues to consider for influencers
Do you need AFS license?
- Think carefully about whether you are offering unlicensed financial services, such as advice on financial products or payment transactions.
- If you are in the business of providing financial services, you must hold an AFS licence (unless you are exempt or authorised to provide these services on behalf of someone else who holds an AFS licence).
- You can find out more about whether you need an AFS licence here. If you're unsure, seek legal advice.
- You may also be at risk of breaching other consumer protection and financial services laws, such as the planning and distribution obligations that came into force in October 2021.
Are you familiar with the relevant regulatory guidance?
- ASIC's regulatory guides are intended to provide practical guidance to help you operate in accordance with the law. Relevant guidance includes:
- Regulatory Guide 36: Licensing: Advice and trading in financial products
- Regulatory Guide 234: Advertising of financial products and services (including credit): Good practice guidance
- Regulatory Guide 244: Information, general and graded advice
- Regulatory Guide 274: Product design and distribution obligations
Have I done my due diligence on people who are paying me remuneration (including non-monetary benefits)?
- Use caution when engaging in paid work or sponsorships. You may need to disclose to your followers any remuneration or benefits you receive.
- Use written contracts and understand their terms.
AFS licensees who use influencers
You may be liable for the inappropriate behaviour of influencers you use, so make sure:
- Exercise your due diligence. If an influencer is acting on your behalf and therefore is your "agent" for the purposes of the Financial Services Act, this will give rise to other obligations (including ensuring they are appropriately trained and comply with the Financial Services Act).
- Have appropriate risk management systems and monitoring procedures in place to ensure that any influencers you use do not offer unauthorised financial services.
- Have sufficient compliance resources to monitor the influencers you use.
- Consider whether you have engaged the influencer to promote financial products that are subject to design and distribution obligations and whether you have taken reasonable steps to ensure that the influencer only promotes those products to consumers in their target market.
Reporting unlicensed activity to ASIC
For unapproved acts, we will consider appropriate regulatory measures by calling ASIC's "To file a complaint" or 1300 300 630.
Important notice
Please note that this information sheet is a summary that provides basic information about specific problems. It is not an alternative to expert advice. Since it is your responsibility to judge your obligations, we recommend that you ask for your own advice on how the applied law is applied to yourself.
Also, please note that this information sheet may include general theory about the application of the law, as this information sheet avoids the legal terms as much as possible. Some of the clauses of the laws are exceptions and important restrictions. In most cases, when you judge the application of the law, you need to take into account your specific situation.
Information seats provide an overview of specific procedures and issues on compliance, or a detailed guidance.
This fact seat was issued in March 2022.
What's new
- 04 September 202 4-Media Release 24-194MR ASIC, Retail Opera Delivative Issue AFS license, ASIC ASIC is Australian Financial Service (AFS), an Australian financial service (AFS) of the difference payment transaction (CFD) and foreign exchange margin trading. Canceled the license.
- 2024. 09. 0 2-News List ASIC and APRA hold a Super Annulation CEO roundtable ASIC and APRA, the latest Super Annination held on June 18, 2024 (Tuesday) and July 16 (Tuesday) The notes of the roun d-table conference were released.
- 28 AUGUST 202 4-News Features ASIC, a new portal for applying for a financial service license in Australia Key Points Asic develops a new digital portal on licensing, including application, change, and cancellation of Australia's financial service license I'm doing it.
ASIC industry funding
What you need to know
ASIC has published Information Sheet Discussing financial products and services online on the liability of Australian financial services. ASIC has published Information Sheet Discussing financial products and services online (INFO ), flagging three key areas social media. This is Information Sheet (INFO ). It is for social media influencers who discuss financial products and services online.
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