If you are a social media influencer who discusses financial products and services online you generally need to be authorised under an Australian financial services (AFS) licence. An AFS licence authorises you to provide financial services to your followers.
If you discuss financial products and services with your followers, for example, providing an opinion on whether or not followers should buy or sell certain shares, or you arrange for your followers to deal in a financial product, for example by promoting links to financial products on trading platforms, you may be providing financial product advice. If so, you must hold an AFS licence (unless you are exempt or are authorised under a representative type arrangement).
So, what is financial product advice?
Financial product advice is a recommendation or statement of opinion which is intended to influence, or which could reasonably be regarded as being intended to influence, a person making a decision in relation to financial products.
It’s okay to share information that describes the features or terms and conditions of a financial product without giving financial product advice. However, if you present information in a way that conveys a recommendation that someone should or shouldn’t invest in that product, you could be providing unlicensed financial product advice which is against the law.
If you’re an influencer who receives benefits or payment for your comments in relation to financial products, you’re more likely to be providing financial product advice because it indicates an intention to influence the audience. If you need advice on financial products or providing financial product advice give us a call. We are always happy to have a no obligation confidential chat with you.
