Here’s an article draft on Finfluencer Guidelines: What It Means for Social Media Promotions, with emphasis on what’s happening in Malaysia and globally. If you like, I can adapt this for another country (e.g. Singapore, U.S.).
Social media has made it easy for “finfluencers” (financial influencers) to reach large audiences with content about investing, savings, crypto, or other money-matters. But given the risks of misleading advice, scams, or unlicensed promotions, regulators are stepping in. New rules or updated guidelines are reshaping what finfluencers and advertisers must do—especially when promoting capital market products or financial services. Here’s what the guidelines are, why they matter, and what both creators and audiences need to know.
What the Guidelines Are (with Malaysia as Case Study)
1. Malaysia: Securities Commission (SC) Rules
- The Securities Commission Malaysia has issued a Guidance Note on the Provision of Investment Advice that addresses finfluencers sharing investment insights or recommendations on social media. It clarifies when such content may require a licence under Malaysia’s laws. (sc.com.my)
- As of 27 March 2025, revised Guidelines on Advertising for Capital Market Products and Related Services were released. These include specific measures for finfluencers: (sc.com.my)
- Finfluencers not formally engaged as marketing agents but who independently promote capital market products or services will be treated as “advertisers”. Under the new rules they must follow the same requirements as more traditional financial advertisers. (The Star)
- Advertisers are required to ensure any marketing agents or representatives they engage also comply with the guidelines. Otherwise, the advertisers bear accountability. (sc.com.my)
- The rules strengthen obligations on accuracy, fairness, risk disclosure, clarity in promotion of fees or charges, and ensuring content isn’t misleading or exploitative—particularly on social media. (The Star)
- There is a prohibition on advertising services by individuals or entities not authorised by the SC. (sc.com.my)
- These revised guidelines will come into effect 1 November 2025. (sc.com.my)
2. Other Jurisdictions
- United Kingdom (FCA): The FCA has issued warnings to finfluencers to adhere to financial promotion rules. Promotions must be fair, clear, not misleading, and/or risk being criminal offences if done without the appropriate authorisation. (ft.com)
- Singapore (MAS): The MAS has stated that simply labelling content with “This is not financial advice” is insufficient. Digital media posts must be clear, balanced and not misleading, even if no formal financial advice is given. (Compliance Corylated)
Why These Guidelines Matter
- Protecting Consumers
Many followers of finfluencers are inexperienced or young, making them vulnerable to hype, exaggerated returns, or misinformation. Clear rules help ensure content contains proper risk warnings and is not misleading. - Preventing Unlicensed / Illegal Activities
Promoting unlicensed financial products, or acting in effect as a financial adviser without a licence, is or will soon be an offence in many jurisdictions. Penalties can be severe (fines, imprisonment). Malaysia’s guidelines make this explicit. (sc.com.my) - Ensuring Accountability
Both content creators (finfluencers) and advertisers (or institutions working with them) will be held responsible. If someone promotes a financial product via social media, even without being formally employed by the company whose product it is, they must follow the rules. - Clarity of Roles
The line between “educational content”, “opinion”, and “recommendation / advice” is being sharpened. Whether something is financial advice (requiring a licence) depends on content, context, expected rewards/commissions, and how it’s presented. - Maintaining Trust & Market Integrity
When misleading promotions proliferate, trust erodes. Regulatory oversight helps keep the capital markets safer and more reliable, which in turn helps legitimate actors.
What Finfluencers & Marketers Must Do
If you are a finfluencer or marketer dealing with financial or investment content, here are steps to ensure compliance:
| Action | What to Check / Do |
|---|---|
| Determine whether your content is “advice / recommendation” | If you’re telling people to buy/sell or hold, or directly steering them toward specific products, that’s more likely to be regulated; if you’re just giving general information or commentary, that may not be. |
| Check for licences / authorisation | Any product, service, or company you promote should be properly registered or licensed with relevant authorities (e.g. SC in Malaysia). Do due diligence. |
| Use clear, balanced messaging | Include risk warnings, disclose fees or potential downsides, don’t promise guaranteed returns, avoid misleading statements. |
| Be transparent with compensation | If you receive commissions, rewards or any form of payment or benefit for promoting something, it should be disclosed clearly. |
| Include disclaimers appropriately | Labels like “Not financial advice” help, but they are not sufficient alone. The overall post should still meet regulatory standards. Context matters. |
| Stay updated on local regulatory changes | Rules are evolving; guidelines being revised. Watch for effective dates (e.g. Malaysia’s 1 Nov 2025) and any new mandates. |
| Ensure advertiser / product provider compliance | If you are working with a company for a promotion (or they engage someone like you), ensure they also comply, as they may be held accountable. |
What This Means for Audiences / Followers
- Be more critical of financial or investment advice you see on social media.
- Always check whether the products or companies being promoted are licensed / authorised in your jurisdiction.
- Look for disclosures of risk, fees, and conflicts of interest.
- Don’t take content as financial advice unless clearly stated and licit. In many places, “educational content” is treated differently under the law from “advice”.
Risks of Non-Compliance
- Legal penalties: Fines, possible imprisonment (depending on jurisdiction) if regulated advice is given by unlicensed persons. Malaysia: up to RM10 million and/or up to 10 years imprisonment. (sc.com.my)
- Reputational damage: Loss of trust by followers, which in the influencer world can be costly.
- Platform actions: Social media platforms may remove content, disable accounts, or respond to regulatory takedowns.
- Liability for misleading content: If content is misleading or omits material information (risks, fees etc.), may be subject to regulatory action or civil claims.
Challenges & Grey Areas
- What counts as “recommendation”? The line between general commentary and specific advice can be blurry.
- Jurisdiction. If the influencer is not located in the same country as their followers, rules may vary or be uncertain.
- Enforcement. Regulations often lag behind new formats, platforms, or emerging technologies (e.g. live streaming, messaging apps).
- Costs of compliance. For small creators, meeting all requirements (legal advice, disclosures, transparency, possibly licensing) may be burdensome.
What to Expect Going Forward
- More guidance / clarifications from regulatory bodies about what is allowed, especially in use of social media features (e.g. live streaming, short videos).
- Stronger monitoring & enforcement, especially for high-reach finfluencers or misleading promotions.
- Cross-border regulatory coordination, especially in markets where content from one country easily reaches another.
- Possibly more licensing regimes for “micro-influencers” or content creators who regularly provide recommendation-type content.
Conclusion
The trend is clear: promoters of financial content on social media—finfluencers—are no longer in a loosely regulated space. Regulators in Malaysia and globally are tightening rules to ensure advertising is fair, accurate, transparent, and legal. If you’re a finfluencer, advertiser, or marketer, knowing these guidelines is essential—not just to avoid penalties, but to build trust with your audience.
