\n\t\tThe FSCA warns against unqualified fin-influencers as scams rise, urging South Africans to seek advice from authorised professionals.\n\t<\/p>\n
A probe by the Financial Sector Conduct Authority (FSCA), aimed at clamping down on the rise in unregulated \u201cinfluencers\u201d, has drawn support and criticism. <\/p>\n
Experts are conceding that there is a need for consumer education to be ramped up in South Africa in the fight against questionable financial advice on social media platforms. <\/p>\n
In a warning to \u201cfinancial influencers\u201d, FSCA commissioner Unathi Kamlana posted on X: \u201cThe Financial Sector Conduct Authority is confronting the rise of unregulated financial influencers or \u2018fininfluencers\u2019, who offer advice on social media platforms. <\/p>\n
Warning to \u2018fin-influencers\u2019<\/p>\n
\u201cThe FSCA is investigating whether these influencers are operating without proper authorisation \u2013 highlighting the risks of seeking financial guidance online. <\/p>\n
\u201cThe trend reflects a growing reliance on social media for investment advice, often from voices lacking the credentials of qualified financial planners. <\/p>\n
\u201cWith sophisticated scams on the rise, the FSCA\u2019s actions serve as a crucial reminder: while social media can be informative, it\u2019s vital to prioritise expert advice over flashy content when making financial decisions.\u201d <\/p>\n
ALSO READ:<\/strong> Most South Africans not happy with financial institutions\u2019 handling of complaints<\/a><\/strong><\/p>\n Communications and branding expert Sarah Britten said consumer education was \u201ckey in empowering people to make more informed decisions\u201d. <\/p>\n \u201cIt is important to be sceptical when there are promises of great returns,\u201d she said. <\/p>\n \u201cWhile you can pay attention to a random person who offers investment advice, never make the mistake of giving them your money.\u201d <\/p>\n Important to distinguish between scams and financial influencers<\/p>\n She said it was important to \u201cdistinguish between scams and financial influencers\u201d.<\/p>\n \u201cSome financial influencers might be scammers, but many are not. However, some of them are unqualified to offer advice in the conventional sense,\u201d she said. <\/p>\n Britten, who used to run marketing for a crypto exchange, said scams were \u201ca major problem, particularly on Facebook\u201d. <\/p>\n ALSO READ:<\/strong> FSCA finds banks do not handle consumer complaints properly<\/a><\/strong><\/p>\n \u201cWe also worked with credible influencers and valued their role in conversations with the public. <\/p>\n \u201cI do not think there is anything wrong with people sharing advice on social media, as long as they are honest about their qualifications and expertise. <\/p>\n \u201cThe fact is that there are such low levels of trust in the mainstream or official qualifications, leading to people still going to look to random people with X accounts or YouTube channels. <\/p>\n Low levels of trust in mainstream or official qualifications<\/p>\n \u201cIf you look at some of the responses to that post, you\u2019ll see claims that the authorities are trying to hide something,\u201d she added. <\/p>\n One post read: \u201cBig brother is watching over who enlightens everyone.\u201d <\/p>\n \u201cIt\u2019s because they are sharing the info they don\u2019t want us to know,\u201d said another. <\/p>\n