In April 2026, ASIC issued warning notices to 18 social media “finfluencers” for unlawfully promoting high-risk financial products and providing financial advice without a licence. Four more received warnings in a separate action, and ASIC has now widened its probe to include licensed financial groups that allowed finfluencers to operate under their AFSL.
The penalties for providing unlicensed financial advice in Australia are serious: up to five years’ imprisonment and fines exceeding $1 million.
Here’s why this matters to you. Recent ASIC research shows that 63% of Gen Z Australians (18-28) rely on social media for financial information. More than half said they “somewhat or completely” trust financial content they see on social media. That’s a generation making real money decisions based on content from people who have no licence, no qualifications, no professional indemnity insurance, and no legal obligation to act in their audience’s best interest.
To be clear: there’s nothing wrong with financial education on social media. The problem is when education crosses into advice. When someone says “I bought this stock and you should too” or “put your money in this fund”: that’s financial advice. In Australia, you need a licence for that. There’s a reason for it. Licensed advisers have obligations: best interests duty, disclosure requirements, ongoing education, and accountability to a regulator.
A finfluencer promoting a contract for difference (CFD) product to their followers has no such obligations. If their followers lose money, and with CFDs, most retail investors do, the finfluencer bears no consequence. They’ve already been paid their sponsorship fee.
I’ve been a licensed financial adviser for 36 years. I’ve watched trends come and go. But the rise of unregulated financial advice on social media is genuinely concerning, because the people most likely to be harmed are the ones who can least afford it: young Australians at the start of their financial journey.
How to protect yourself: Before acting on financial content you see online, check whether the person holds an Australian Financial Services Licence. You can search ASIC’s professional registers at ASIC Connect. If they’re not on there, they’re not licensed. And if they’re not licensed, their advice isn’t regulated, isn’t insured, and isn’t accountable.
There’s a reason financial advice is regulated. Your money deserves better than someone with a ring light and a sponsorship deal.
