There are particular risks associated with promoting financial product and financial services via social media. Missing or incorrect information, in contrast to the case of consumer goods, may lead to significant financial consequences for consumers.
The European Securities and Markets Authority (ESMA) has therefore published a factsheet that addressed to finfluencers (financial influencers). The factsheet explains the legal and substantive minimum requirements that are required to be observed when communicating about financial products.
The key points at a glance:
- Finfluencers bear full responsibility for their content – even if they do not have formal financial qualifications.
- Advertisements must be clearly marked as such, especially if you are receiving payments, gifts or other benefits.
- Statements about financial products must be true, clear, and not misleading.
- High-risk products, like contracts for difference (CFDs), forex, futures or volatile crypto-assets require particular caution and clear warnings about the risks involved.
- Personalised recommendations may constitute investment advice that requires a licence – disclaimers will not provide any form of protection.
- If you don’t understand a product, don’t promote it.
The factsheet serves as practical guidance, but does not constitute legal advice. Finfluencers are expected to check their regulatory obligations themselves.
Download Factsheet
The following link contains the German version of the factsheet for Austria:
The factsheet has been translated into all EU languages, with other language versions available from the link below:
https://www.esma.europa.eu/document/finfluencers-tips-responsible-promotion
More detailed information can be found in the edition of the FMA’s “Let’s talk about money” series on “Likes instead of licences” at: https://redenwiruebergeld.fma.gv.at/en/finfluencers-likes-instead-of-licences/.