On 13 November 2024, in response to a parliamentary question, Mr Alvin Tan, Minister of State for the Ministry of Trade and Industry and the Ministry of Culture, Community and Youth, addressed issues regarding online financial influencers, often known as “finfluencers,” who share finance-related content on social media. Speaking on behalf of Deputy Prime Minister and Chairman of the Monetary Authority of Singapore (MAS), Mr Gan Kim Yong, Mr Tan outlined regulatory expectations for finfluencers and provided insights into recent complaints, enforcement actions, and possible legislative considerations.
Finfluencers, as Mr Tan explained, are individuals who utilise social media to provide tips, advice, and insights on finance-related subjects such as investing, budgeting, and saving. These individuals play a growing role in digital financial education and influence, engaging a wide audience with their content. MAS expects that any financial institutions that employ finfluencers for promotional purposes ensure that the content shared is clear, balanced, and accurately reflects both the benefits and risks associated with financial products.
When finfluencers move beyond general educational content to offering specific financial advice, they fall under the purview of the Singapore’s Financial Advisers Act (FAA). According to MAS guidelines, any individual who receives payment for providing recommendations or opinions on buying, selling, or holding financial products is regarded as offering financial advice and must therefore be licensed. Even if a finfluencer is unpaid, they may still be considered to be providing financial advice if they consistently share specific recommendations or opinions on investments. In contrast, general educational content on financial topics is not classified as financial advice and does not require regulatory oversight.
Over the past five years, MAS has received an average of fewer than five complaints per year regarding the conduct of finfluencers. Most of these complaints relate to remarks made by finfluencers who did not provide any regulated financial advice, and therefore were not subject to MAS regulation. This relatively low level of complaints indicates that while finfluencers are highly visible, they are largely adhering to content boundaries that keep them outside the scope of financial advice regulation.
MAS and the Commercial Affairs Department are committed to enforcing licensing requirements for financial advice. Over the past three years, enforcement actions were taken against six individuals who were found to be providing unlicensed financial advice; none of these cases involved finfluencers. This demonstrates a clear regulatory stance: individuals offering unlicensed financial advice, whether online or otherwise, will face enforcement action, ensuring the integrity of financial advice standards in Singapore.
While complaints against finfluencers remain minimal and largely non-advisory in nature, the Ministry is vigilant in monitoring this growing sector. MAS’s approach thus far focuses on clear guidelines and rigorous enforcement against unlicensed financial advisory activities, helping maintain the quality and reliability of financial advice available to the public.
MAS upholds a clear distinction between general financial education and regulated financial advice, allowing finfluencers to operate within educational boundaries while ensuring that specific investment recommendations remain the domain of licensed advisors. Through continued oversight, MAS and the Commercial Affairs Department will monitor and enforce the requirements under the Financial Advisers Act to ensure compliance and uphold trust in Singapore’s financial advice framework.
(Source: https://www.mas.gov.sg/news/parliamentary-replies/2024/pq-on-complaints-against-online-finfluencers)
