ASIC has published Information Sheet 269 Discussing financial products and services online on the liability of Australian financial services (AFS) licensees who use social media influencers as a marketing or distribution channel.

ASIC monitors online financial discussion by influencers who feature or promote financial products for any misleading or deceptive representations or unlicensed financial services to assess whether they are providing financial product advice or arranging for their followers to deal in a financial product without holding an AFS licence (unless they are exempt or are authorised to provide those services as a representative of another person who holds an AFS licence).

ASIC also monitors whether online content is accurate and balanced and not misleading.

AFS licensees who use influencers may be liable for misconduct by influencers they use if the influencers are considered to be their representatives whom they must train, monitor and supervise.

ASIC’s Information Sheet does not address the Corporations Act exemptions in section 911A(2)for general advice contained in public newspapers and broadcasts.

For social media influencers, the Information Sheet includes examples of what ASIC considers to be financial product advice, dealing by arranging and misleading and deceptive conduct.

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Author: David Jacobson
Principal, Bright Corporate Law
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About David Jacobson
The information contained in this article is not legal advice. It is not to be relied upon as a full statement of the law. You should seek professional advice for your specific needs and circumstances before acting or relying on any of the content.