Coin World News Report:
The Financial Conduct Authority (FCA) in the United Kingdom is conducting interviews with 20 financial influencers in a cautious manner. According to the regulatory body, this action is part of its efforts to combat potentially illegal promotion of financial products by financial influencers.
In addition, the FCA has issued alerts regarding 38 social media accounts operated by financial influencers, which may contain illegal promotional activities.
Other regulatory bodies, including the Financial Industry Regulatory Authority and the U.S. Securities and Exchange Commission, have expressed concerns about the influence of social media influencers on investor behavior. The Federal Financial Supervisory Authority in Germany has also provided relevant data indicating concerns about potential risks associated with their influence on the financial market.
The Ultimate Influencers: Trust and Responsibility
The increase in scams targeting young people is becoming increasingly worrisome. Research shows that 62% of individuals aged 18 to 29 pay attention to social media influencers, and 74% of them trust their advice. Nine out of ten young followers have changed their financial behavior based on this advice.
Steve Smart, Director of Enforcement and Market Oversight at the FCA, stated, “Ultimate influencers are trusted by those who follow them, often attracting young people and potential vulnerable groups who are enticed by their glamorous lifestyle.”
He added, “Ultimate influencers need to check the products they promote to ensure they are not illegal and do not jeopardize the livelihood and savings of their followers.”
Update: FINRA and SEC express concerns about financial influencers on social media.
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— Kohei Kurihara, Co-Privacy