Global Crackdown on Influencer-Driven Investment Promotion Expands

[etfs]

South Korea’s proposal comes amid rising concern over the growing power of “finfluencers” and the risks they pose to retail investors. Reports show a sharp increase in complaints involving quasi-investment advisory businesses in recent years, highlighting the scale of the issue. Lawmakers argue that undisclosed conflicts of interest can expose the public to significant financial harm.

Regulators worldwide are taking similar steps. In the United Kingdom, the Financial Conduct Authority requires prior approval for financial promotions, while in the United States the Securities and Exchange Commission and Financial Industry Regulatory Authority have imposed fines over undisclosed endorsements. In Europe, Italy’s Commissione Nazionale per le Societa e la Borsa (CONSOB) has echoed guidance from the European Securities and Markets Authority, making clear that existing investment and advertising rules apply fully to crypto-promoting influencers.

[madtrader]

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