The Australian Securities and Investment Commission (ASIC) has issued warnings to four finance influencers.

Also known as ‘finfluencers’ online, they are suspected of providing financial advice including promoting claims of guaranteed returns on various social media platforms without a license.

The commission sent a warning letter to the influencers,The influencers were not named in it.

“ASIC is concerned that you may be contravening Australian financial services laws by carrying on a financial services business in Australia without being authorised to do so,” the letter said.

Unlicensed influencers are allowed to operate as authorised representatives of Australian Financial Services (AFS) licensees. These licensees are responsible for what the influencers say and do.

ASIC has also started reviewing these licensees, who manage and supervise 15 influencers.

The warning comes after research by ASIC’s Moneysmart platform found that nearly two-thirds of Gen Z are using social media to make decisions on their finances. The survey also found that 56 percent said they somewhat or completely trust the information of platforms such as TikTok and Instagram.

This crackdown is part of a Global Week of Action Against Unlawful Finfluencers which is an event that involves 17 global regulators.

ASIC Commissioner Alan Kirkland said that what people see online is designed to drive clicks rather than promote accurate information.

“If someone on social media is promising easy money or guaranteed returns, there is a real risk they’re breaking the law, and you could be the one who loses money,” he said.

ASIC has urged young Australians to compare social media influencers advice with trusted sources.

Photo: Smartphone displaying investment growth app interface by Dave Garcia is available HERE and used under a Creative Commons Licence. This image has not been modified.