Summary: In 2025, the Securities and Futures Commission ("SFC") joins global regulators to tackle unlawful financial influencers (finfluencers). They will focus on supervisory measures, enforcement actions, and public education. High-profile actions include suspending a finfluencer's license and prosecuting another for illegal activities. The SFC will issue guidance on finfluencer engagement and actively warn the public about scams using its 'Don’t be Sucker' campaign.
This article was generated using SAMS, an AI technology by Timothy Loh LLP.
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On June 06, 2025, the Securities and Futures Commission ("SFC") is collaborating with international regulators to combat the activities of unlawful financial influencers, a phenomenon known as 'finfluencers'. This initiative is part of the global 'Week of Action Against Unlawful Finfluencers', which runs from June 2 to June 6, 2025.
Ms. Julia Leung, CEO of the SFC, underscores the importance of a coordinated global approach to preserving market integrity and protecting investors. She emphasizes the need for investors to verify the credentials and legitimacy of finfluencers and to perform due diligence on investment ideas.
To address the issue, the SFC has begun a thematic inspection in April 2025 focusing on securities brokers' compliance with regulations regarding finfluencer engagement and digital marketing of financial products and services. The inspection will review due diligence processes and monitoring measures to ensure adherence to licensing and regulatory standards.
As part of its supervisory role, the SFC plans to issue guidelines to licensed corporations detailing expected standards for finfluencer and digital platform engagement for marketing purposes.
On June 06, 2025, the SFC has taken a range of enforcement actions against unlawful finfluencers. This includes suspending the license of a finfluencer convicted of providing unauthorized investment advice and commencing criminal prosecution against another for unlicensed regulated activities.
The SFC has also acted against overseas virtual asset trading platforms targeting the Hong Kong public by terminating affiliate arrangements with finfluencers. Additionally, it has worked with social media platforms to remove unauthorized posts and profiles, disrupting illegal events and issuing cease-and-desist letters.
The SFC has been actively warning the public about scammers impersonating finfluencers on social media. It uses its Alert List and I-SCAN networks to disseminate alerts. As part of its 'Don't be Sucker' campaign, the SFC has distributed educational content, including a music video, Instagram posts, seminars, and community outreach. Further amplification of this message will be achieved through mass media advertisements and a TV feature story from May to June 2025.
In the coming months, the SFC plans to launch more targeted communications to enhance anti-scam awareness and build resilience in the investing public.
Finfluencers are social media personalities promoting financial products and insights. While some operate legally, others engage in illegal activities. International organizations like IOSCO and various regional regulators are collaborating to address this issue.
The SFC has highlighted instances of finfluencer scams in press releases dating back to June 2024, March 2025, and May 2025, encouraging the public to refer to their Alert List and I-SCAN for additional information and to understand common scam scenarios, such as deceptive investment tips.
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