The Radin Mas MP was the one to ask in congress about the finfluencer sector’s rules and the volume of grievances MAS has received from finfluencers.
Mr Yong noted that finfluencers wield” major effect” among people, which means it is vital for them to get” area to greater scrutiny”.
This is particularly crucial because finfluencers often claim they are not giving financial advice but instead continue to talk about financial products and programs, he said.
CONSIDERED FINANCIAL ADVICE: WHAT IS IT?
The MAS stated in an message that the FAA’s frequently asked questions area has been updated.
This makes it clear that those who work as financial bloggers must pass a two-stage verification process to determine whether their actions are viewed as economic advice.
A finfluencer’s first stage evaluates whether they are trying to persuade people to buy, sell, or carry investments, or if they are just expressing their viewpoint. Next, it’s important to check whether their information is unique or if they suggest certain actions.
The regulator may assess in the next stage whether finfluencers give financial advice consistently, that is, in a proper and natural way, or if they are compensated for doing so.
The economic influencer may need a license if the answer is “yes” at every stage. Often, the content may be deemed to be more likely to be financial education and not a license.
Mr. Tan had stated that those who are paid to advise or express their opinions on the purchase, sale, or holding of investment products may be regarded as providing financial advice.
He explained to the legislature that even those who do not receive money will be regarded as doing so if they often make for recommendations or expressions.
The posting of “general education articles” is no economic counsel, he added.