Australia’s corporate regulator has warned social media finance influencers that misleading or unlicensed advice could expose them to serious penalties, as younger users increasingly turn to online platforms for investment guidance.
The Australian Securities and Investments Commission (ASIC) has issued notices to four unlicensed online financial influencers, also known as “finfluencers,” about promoting financial strategies including claims of high or guaranteed returns.
Some global finance influencers, including Humphrey Yang, have built up massive followings—in his case, more than 54 million, highlighting the scale of content reaching younger investors online.
The action follows research commissioned by ASIC showing strong reliance on social media for financial information among young Australians.
A survey of more than 1,200 people found about two-thirds use online influencers for advice, with more than half saying they trust what they see.
ASIC Commissioner Alan Kirkland said the way content is distributed online increases the risk of misleading information gaining traction.
“If someone on social media is promising easy money or guaranteed returns, there is a real risk they’re breaking the law, and you could be the one who loses money,” he said.
“What people see online is shaped by algorithms designed to drive clicks and engagement, rather than promoting accurate information. This means consumers are more exposed to biased or misleading content.”
Regulator Outlines Risks and Legal Requirements
ASIC said its surveillance has focused on accounts targeting Australian audiences and discussing financial products including shares, exchange-traded funds, and more complex instruments such as derivatives. The individuals who received warnings have not been publicly identified.
Under Australian law, anyone providing financial product advice must hold an Australian Financial Services licence or act as a representative of a licence holder.
Breaches can carry penalties including imprisonment for up to five years and substantial fines.
The regulator has urged consumers to check whether online advisers are licensed and to compare social media content with information from established and independent sources.
The bona fides of advisers can be verified through the ASIC Professional Registers Search.
Previous enforcement action has highlighted the risks in the sector.
In 2022, the Federal Court found that influencer Tyson Robert Scholz had provided unlicensed financial product advice through share trading courses and paid subscriptions.
He charged up to $1,500 for subscriptions to various levels of share trading training, conducted training sessions and seminars on trading in ASX-listed securities, and suggested share purchases.
He was banned from operating a financial services company in Australia and ordered to pay $450,000 in costs.
ASIC last took action against suspected unlawful finfluencers in 2025, when 18 people were targeted.
That resulted in several becoming authorised representatives, while others amended their content or ceased targeting Australians.
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