Self-proclaimed financial experts promise quick money on social networks. Regulators, such as former FINMA director Branson, are now taking action.
New business models are spreading rapidly on social media.
On Instagram, TikTok, YouTube, and in messenger groups, supposed ‘financial experts’ promise financial freedom, quick profits, and “secret tips” on stocks, crypto assets, or complex investment models.
Advertising or opinion?
What begins as a seemingly casual exchange in podcasts or short videos often leads to specific purchase recommendations, links to trading platforms, or even peer pressure to follow certain investment strategies.
However, many of these offers legally fall somewhere between paid advertising, expressions of opinion, and actual investment advice, which are regulated.
For many people, it is often difficult to tell whether these channels are really disseminating independent information about Bitcoin, Ethereum, closed-end real estate funds, doomsday coins, etc., or whether they are actually just disguised sales channels for high-risk investment products.
Focus on investor protection
Regulators are now using leaflets, media releases, and information events to clarify how seemingly non-binding investment tips can gradually turn into investment advice and investment brokerage, which often require authorization.
Anyone who provides investment advice on a commercial basis without permission is liable to prosecution in many jurisdictions and can face legal consequences.
The German financial market regulator Bafin, headed by Mark Branson, who previously led the Swiss Financial Market Supervisory Authority FINMA, is at the forefront of this warning.
Not comparable to watch advertising
Misleading or reckless posts can have negative financial consequences for followers and result in legal consequences, according to Bafin.
‘Finfluencers’, i.e., influencers with a financial connection, must take responsibility for the content they post, according to regulators, which also include the European Securities and Markets Authority (ESMA).
Even with risky products such as CFDs, forex, futures, or cryptos, the opportunities and risks must be made clear, and it should not just be about making a quick buck.
Advertising for a financial product or service is not comparable to advertising for Hermès or Chanel handbags or luxury watches from Rolex, Patek Philippe, Audemars Piguet & Co.
Behaviour in the financial world must be fair.
Disclaimers have little effect
Local financial regulators emphasized that not every finance-related statement is automatically regulated.
However, platforms that actively promote investment models and enter into close partnerships or pocket commissions could well be problematic.
“Do not give personalized recommendations on which financial products to buy, sell, or hold,” they warn.
Expressing an opinion publicly on whether the price of a share or crypto asset will rise or fall could constitute investment advice subject to licensing, warned Bafin in a leaflet.
Disclaimers such as “This is not investment advice” often do not even provide protection.
Media and rating agencies with rules
It must also be clear and understandable when so-called finfluencers receive money, gifts, or benefits for promoting any financial product.
This also applies if they themselves have invested in the advertised product or could profit from it, the German Financial Market Authority explained.
The media follow the respective code of ethics for journalists, which clearly separates advertising from reporting. Journalists at reputable media outlets are not allowed to publish articles about investments if media professionals and their families have invested in them or intend to do so.
Rating agencies now also have strict rules for their analysts who issue buy, sell, or hold recommendations.
Acting fairly and transparently
Financial regulators are now making it clear that finfluencers’ business models are often not only morally questionable, but also highly risky from a legal perspective.
In Germany, there is currently a scandal in the real estate sector where investors have lost a lot of money because they followed the recommendations of a certain finfluencer. But there are also criminal cases in Switzerland where FINMA upholds investor protection and even intervenes in some cases, as “Moonshot” illustrates.
All of this makes it clear that rules can increase trust, especially when it comes to money.
Fair and transparent communication is paramount, especially when it comes to financial matters.
January 23, 2026/kut./ena.
