IOSCO: regulators target finfluencers, many report enforcements

International securities regulators are targeting finfluencers, with nearly half (44%) reporting enforcement actions related to online financial content, according to research by the International Organization of Securities Commissions (IOSCO) published this month.

Among enforcement cases, the survey of IOSCO members found that 15 regulators had already taken action or imposed sanctions against finfluencers, while four had acted on financial intermediaries, such as neo-brokers using finfluencers.

With the borderless nature of the internet, most of the surveyed authorities also expressed growing concerns on online financial misinformation. However, the IOSCO authors concluded that an “entirely new regulatory regime” is not necessary.

“This issue [regarding finfluencer activities] falls within national jurisdiction and, in many cases, existing legal frameworks may already offer sufficient tools to address potential risks,” said the report.

A UK Financial Conduct Authority (FCA) spokesperson told Compliance Corylated: “Some finfluencers flaunt lavish lifestyles to their followers but there are cases where their promotions and financial advice are breaking the law and putting people’s money at risk. Finfluencers must act responsibly. It doesn’t matter what qualifications they have — they can only promote financial products where they are authorised to do so.

“It is vital that tech firms play their part by proactively protecting their users and quickly removing finfluencer content that breaks the rules.”

FCA campaigns

According to a report by UK Finance, social media platforms and online marketplaces originated 70% of UK authorised push payment (APP) fraud in 2024. In April, two FCA representatives gave evidence to the Treasury Committeeʼs inquiry into finfluencers and called on social media giants to be more “proactive than reactive” in removing harmful content.

Since 2021, the FCA has been working with finfluencers to improve financial literacy through its Invest Smart initiative. Regarding the selection criteria for these finfluencers, the spokesperson said the regulator made “rigorous checks”, to assess their past content.

The UK watchdog also spends around £1.8 million annually on its consumer-facing Scam Smart campaign.

Regulatory challenges

Establishing an “international framework” for regulating finfluencers could be difficult, however, with the current diverse definitions across jurisdictions, according to the IOSCO report.

For example, Belgium’s Financial Services and Markets Authority (FSMA) defines finfluencers as “personalities known to the general public who are paid to promote virtual currencies to their followers” and adds that “such individuals (eg, top artists or athletes) often have no qualifications in finance but use their celebrity status as a sales argument”.

While the FSMA focuses on public status and qualifications, the Dutch Authority for the Financial Markets (AFM) broadly considers finfluencers to be content creators who post messages about investments “irrespective of scale and reach”. Meanwhile, the French Autorité des Marchés Financiers (AMF) offers a responsible influence certificate to finfluencers who complete its online training course.

The FCA does not have a specific definition of “finfluencer”, its spokesperson confirmed.

In the survey, 14 out of 16 respondents called on IOSCO to create a “central definition” for finfluencers, saying this would improve regulatory clarity, reduce confusion and support international cooperation and enforcement. However, one respondent said a standard definition should not be imposed.

AI-integrated solutions

Many IOSCO respondents also supported using advanced technologies, such as artificial intelligence (AI) and data analytics, to monitor finfluencers and their activities. One suggested creating a regulatory framework for algorithms, using the platforms’ internal mechanisms to oversee social media platforms.

“Realistically, we know that the online platforms themselves and the algorithms are driving the content to consumers,” FCA director of consumer investments Lucy Castledine told the Treasury Committee inquiry in April.

IOSCOʼs report is part of its Roadmap to Retail Investor Online Safety initiative to protect retail investors globally from fraud, risks and online misinformation. It will publish a summary of impact in November 2025.