News Release

Vancouver – The BC Securities Commission (BCSC) has joined regulators around the globe in a second coordinated initiative to target unlawful finfluencers who are putting millions of social media users at risk by touting financial products or services illegally.

During this year’s Global Week of Action Against Unlawful Finfluencers from April 20 to 24, sixteen regulators undertook a combination of enforcement actions, removing online content, consumer awareness programs and educational outreach with finfluencers on how securities regulations may apply to them.

As financial promotions become more prevalent on social media, international collaboration is crucial in regulators’ ongoing efforts to strengthen consumer protection and safeguard individuals from illegal financial promotions. During the initiative, the BCSC joined other Canadian regulators, as well as securities regulators from Europe, South America, Asia, the Middle East and Oceania in targeting finfluencers.

Finfluencers use social media platforms to share financial advice or investment tips. Many don’t possess formal financial education or credentials, and their advice – often accompanied by the trappings of a lavish lifestyle – may not always align with regulatory standards or individual investor needs. Some finfluencers may tout products or services without regulatory authorization, or without properly disclosing that they are being compensated by the companies they mention.

The BCSC issued 14 letters to YouTubers and others from around the world who have promoted B.C. publicly-traded companies, explaining how to comply with rules for sharing information that could encourage the buying, selling, or holding of the company’s shares or other securities. In addition, the BCSC also conducted outreach to investors during the week, including publishing educational information and creating social media content.

Earlier this year the BCSC issued a Notice of Hearing alleging that a B.C. finfluencer and his companies failed to clearly disclose that their promotion of certain issuers was sponsored. Under B.C.’s Securities Act, any promotional content related to securities must clearly and conspicuously disclose if it’s disseminated by or on behalf of a company or someone who owns shares in that company. Failure to comply can lead to significant penalties.

The BCSC would like to thank the U.K. Financial Conduct Authority for initiating the Global Week of Action Against Unlawful Finfluencers.

About the BC Securities Commission (bcsc.bc.ca)

The BC Securities Commission, an independent provincial government agency, strives to make the investment market benefit the public. We set rules, monitor compliance by industry, take action against misconduct, and provide guidance to investors and industry. As guardians of B.C.’s investment market, we’re committed to maintaining a market that is honest, fair, competitive and dynamic, enabling British Columbians to thrive.  

Media Contact:
Elise Palmer
604-899-6830

Public inquiries:
604-899-6854 or 1-800-373-6393 (toll free)
inquiries@bcsc.bc.ca

Learn how to protect yourself and become a more informed investor at www.investright.org