What brands should consider before engaging finfluencers

Commercial engagement of financial influencers (finfluencers) is a murky, rough sea to navigate both from a compliance and regulatory perspective. Regulation varies from market to market and case law is still forming. As of January 2025, global regulators have tightened oversight of financial influencers in response to concerns about misinformation, unlicensed advice and consumer risk.

Finfluencer regulations across the world

In the US, the SEC requires finfluencers to clearly disclose any compensation or conflicts of interest when promoting financial products. Those who offer specific investment advice or recommend particular securities may be subject to the Investment Advisers Act of 1940, which requires registration and fiduciary obligations. Similarly, the FINRA has issued guidance clarifying that such activities may fall under its rules on suitability and anti-fraud protections.

In the United Kingdom, the FCA has taken a proactive approach. mandating that all financial promotions be “clear, fair, and not misleading” and that any promotion of financial products, including investments, be approved by a regulated firm. Additionally, finfluencers must include risk warnings, particularly when discussing high-risk or volatile products. These rules aim to ensure that content creators operate within the same framework as licensed financial professionals when distributing financial content to the public.

In addition to the FCA, the consumer regulator (Competition and Markets Authority) has indicated some specific concerns and implications for finfluencers due to the higher risk nature of the content they promote. The CMA has expressed concern over finfluencers promoting financial products or services, including investments and trading platforms, without making it clear that they are being paid or incentivised. This includes posts where influencers may receive commission (affiliate links) or compensation for directing followers to certain platforms. Such omissions may breach consumer protection law if they mislead audiences into thinking the recommendation is impartial.

The CMA works closely with the FCA. This collaboration means that finfluencers face dual regulatory scrutiny: failure to disclose ads could trigger CMA action, while promoting unauthorised financial products could fall under FCA enforcement.

Within the EU, the regulatory landscape is of course shaped by MiFID II. The European Securities and Markets Authority has emphasised that any social media content promoting financial instruments must comply with MiFID II standards, which require transparent, balanced and adequately risk-disclosed communications. To add more complexity and headache to marketers, ESMA also stresses that cross-border promotions targeting EU audiences must comply with local MiFID-aligned regulations, even if the influencer is based outside the region.

Further afield in Australia, the Australian Securities and Investments Commission continues to tighten restrictions on finfluencers who promote financial products or advice without the appropriate licensing. Under the Corporations Act 2001, those presenting themselves as financial advisers must meet legal qualifications and disclosure requirements. ASIC has also increased enforcement against misleading or deceptive conduct and works with social media platforms to flag harmful or non-compliant content, reinforcing its commitment to protecting retail investors in the digital financial ecosystem.

Although not financial-sector specific, the CMA’s broader influencer guidelines, issued in collaboration with the Advertising Standards Authority (ASA), apply equally to finfluencers. These include using clear labels such as “#ad” at the start of a post, avoiding ambiguous language (for example “sponsored” alone isn’t always enough), and ensuring that disclaimers are easily visible and not hidden in bios or after a “Read more” click as one would expect from any asset management advertising.

Key considerations for brands looking to engage finfluencers

When a brand engages a financial influencer to promote its investment products, it enters a complex environment marked by heightened regulatory obligations and reputational sensitivities. In contrast to general consumer marketing, the promotion of financial products via social media introduces risks that are both legal and strategic. As a result, it is vital that brands approach these collaborations with caution, structure and comprehensive contractual protections.

A key consideration in any finfluencer arrangement is the ownership and usage of the content produced during the campaign. It is essential for the brand and the influencer to have a shared understanding of who holds the rights to the content once it is published. Brands must determine whether they are entitled to reuse the influencer’s material across different platforms, for example in paid advertising, on their corporate website or within investor communications, and for how long such rights will remain in effect. It is equally important to define whether those rights are exclusive or non-exclusive and to what extent the sponsor may modify the content post-publication.

These expectations should be set out clearly in a content license agreement that not only defines the scope of use but also anticipates scenarios involving third-party assets, such as background music, stock images or video elements. While such intellectual property considerations are standard practice in traditional media production, finfluencers, particularly those without legal or marketing backgrounds, may not be familiar with the implications. Brands should take proactive steps to manage and educate their partners on these issues where necessary.

The growing use of generative AI in content creation introduces additional complexities. With ownership rights over AI-generated material still evolving in law, it is increasingly important that brands clearly communicate their AI policy to influencers from the outset. This should cover the acceptability of using AI for scripting, image generation or voiceovers, and address the security implications of uploading confidential or proprietary information into AI tools – especially those without privacy safeguards. Where AI-generated elements are used, the brand may wish to mandate appropriate disclosures to ensure transparency with audiences and to manage regulatory risk.

Another critical aspect of finfluencer partnerships is exclusivity. Finfluencers often work with a portfolio of brands, sometimes including direct competitors. Brands need to assess whether it is appropriate to restrict the influencer from endorsing competing financial products during the term of the campaign, or even for a specified period after its conclusion. The scope of exclusivity must be clearly defined: is it limited to a specific asset class, investment style or broader financial sector? Flexibility should also be considered, especially for legacy clients or personal content that does not conflict with the sponsor’s positioning. An appropriately balanced exclusivity clause helps maintain the integrity of the brand's message while preserving the influencer’s commercial viability.

The approval process is another area where clarity and diligence are essential. Given the tight regulatory framework governing the promotion of financial products, all content would be subject to a robust review and approval compliance protocol. This includes the pre-approval of scripts, social media posts and visual materials, as well as ongoing monitoring of published content. There must also be clearly defined mechanisms for withdrawing or correcting content that breaches guidelines or becomes outdated. Compliance teams may choose to review not only the content itself but also any responses or engagements by the influencer post-publication, especially if they involve forward-looking statements or investment guidance.

Finally, the question of liability and insurance must not be overlooked. Financial promotion is an area where misstatements or omissions can have serious consequences, both reputational and legal. Sponsors should determine whether the influencer holds adequate insurance coverage, such as professional indemnity or public liability insurance. In the event that an influencer makes a misleading or non-compliant statement, the contract must clearly set out who is responsible and what remedies are available. It may be appropriate to include indemnity clauses that protect the sponsor from regulatory or third-party claims. To further mitigate risk, some brands may require influencers to complete a basic compliance course before launching any campaign activities.

Conclusion

Collaborating with finfluencers presents a valuable opportunity for brands to connect with a digitally native audience in the financial space, but it comes with distinct legal, reputational, and operational risks. Once the regulatory restrictions have been navigated and overcome, key areas that require careful attention include ownership and usage rights of content, the role of AI in content creation, exclusivity terms, a rigorous, fast-paced compliance approval process, and insurance and liability provisions. A detailed brief, along with a thorough and transparent contractual framework, combined with open communication and mutual understanding, will help ensure a successful and compliant influencer engagement and market stand out.