Canada cracks down on finfluencers
Canadian regulators published new guidance to help so-called finfluencers comply with securities laws.
The Canadian Securities Administrators and the Canadian Investment Regulatory Organization have published new guidance for financial content creators - also known as 'finfluencers' (i.e. financial influencers), to clarify legal obligations when posting about investing online.
The guidance provides concrete examples for registrants and finfluencers on meeting securities requirements, including identifying and disclosing conflicts of interest, the CSA and CIRO said in a statement.
“Finfluencers can have an impact on how people make investment decisions, and this comes with substantial responsibilities,” said Stan Magidson, CSA Chair and Chair and CEO of the Alberta Securities Commission.
Andrew Kriegler, CIRO President and CEO, meanwhile, added: “Social media is changing how Canadians learn about investing, and that brings new risks.”
The CSA and CIRO said it expect finfluencers, registrants and issuers who work with finfluencers to become familiar with and follow the rules in the guidance; breaking securities laws can lead to penalties and other enforcement actions, the statement added.
The Recap
- CSA and CIRO released guidance for finfluencers and firms.
- Guidance provides concrete examples on conflicts of interest.
- Finfluencers, registrants and issuers must follow the guidance.
