ASIC Flags New Threat: Unlicensed Finfluencers Targeting Aussie Youth Through Hype Culture

Australias financial regulator, ASIC, is sharpening its focus on a rising and underregulated risk: social media finfluencers selling high-risk financial dreams to younger audiences through curated lifestyles and hype-driven content.

In a new wave of enforcement, ASIC has issued 18 warning notices to unlicensed finfluencers promoting speculative products such as CFDs and OTC derivatives—products typically unsuitable for retail investors due to their complexity and volatility.

What‘s different this time is the regulator’s tone. Rather than solely cracking down on illegal promotion, ASIC is calling attention to how digital influence culture is distorting perceptions of financial risk, especially among Australians under 30. According to a recent Moneysmart study, 41% of young Australians now turn to social media for financial advice, making them highly susceptible to charisma-driven misinformation.

“Finfluencers aren‘t just pushing products—they’re building brands around luxury, speed, and success,” said ASIC Commissioner Alan Kirkland. “That‘s what makes them dangerous. The advice may be bad, but it’s wrapped in aspirational content that lowers peoples guard.”

Unlike traditional financial scams, which rely on cold calls or fake broker sites, todays finfluencer promotions often operate behind “exclusive” Telegram groups or subscription-based Instagram stories. These are harder to detect and even harder to regulate.

Though Australia hasnt yet introduced a dedicated finfluencer licensing regime like the UAE, ASIC has made it clear that anyone providing financial advice must hold a proper license. Under the Corporations Act, failure to comply can result in heavy fines and even prison time.

The move signals a strategic shift for ASIC—from reactive enforcement to behavioral intervention. Future efforts are likely to include public education, media platform cooperation, and early engagement with aspiring creators.

The regulator‘s latest campaign reminds investors to verify financial services providers using ASIC’s professional register and to be wary of financial advice that promises fast returns or flaunts an unrealistic lifestyle.

As the line between influencer and advisor continues to blur, ASICs message is simple: financial services are not a performance—and hype is not a substitute for compliance.