Finance Services Minister Jane Hume recently said the federal government would not step in to regulate social media “finfluencers”.
She said they are not much different “to the bloke down at the pub who wants to tell you all about the really great company he just invested in – but with a much louder voice”.
“This isn’t financial advice, but as has been the case since taxi drivers started giving stock tips, it is an inevitable part of a financial ecosystem,” she said.
“Some of the information and opinions that consumers receive from online forums will be bad. But some of it will be good. And a lot of it will better engage younger generations in investment and financial markets,” Senator Hume said.
The Australian Securities and Investments Commission (ASIC) is concerned about the misinformation and unlicensed investment advice delivered online and its impact on the growing cohort of mostly younger, inexperienced investors.