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OJK to up ante in 'finfluencer' clampdown with new rules
The OJK is cooking up a new set of rules in an effort to curb the growing phenomenon of "finfluencers" and protect consumers from potential losses through unlicensed financial advice on social media.
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Stock illustration of digital trading (Unsplash/Burak Kebapci)
I
n a bid to curb practices that could result in misleading financial advice on social media platforms, the Financial Services Authority (OJK) is drafting new regulations to oversee financial influencers, also known as “finfluencers”.
The rules, expected in the second half of the year, could require influencers to gain certification prior to promoting any financial products.
“We cannot let them speak carelessly and tell people that a product is good and profitable while they make money from it,” Friderica Widyasari Dewi, the OJK’s chief executive of behavioral supervision of financial business, education and consumer protection, said on Tuesday, as quoted by Antara.
Read also: BPOM wants to rein in food, cosmetic influencers to prevent ‘chaos’
Finfluencers are individuals who use social media to share and shape public opinion on investments, banking, insurance and other financial products, often without any formal expertise.
Authorities have been clamping down on this practice amid concerns over its potential role in financial fraud, such as the promotion of unauthorized investments, unlicensed asset management and illegal money collection.
The new rules were expected to cover all financial products, from banking to capital markets, to ensure that finfluencers “share responsible advice and do not mislead consumers”, Friderica said.
