Finantsinspektsioon held a round table discussion on the role of influencers in sharing information about investing

Finantsinspektsioon organised a round table on 3 October with financial influencers or finfluencers. It discussed how the activities of finfluencers affect investment, what the legal restrictions and risks for them are, and how they as consumers can act reasonably and safely.

Finantsinspektsioon is drawing up a review of good and bad practice that is aimed at the influencers themselves and their followers. Strict rules on giving investment advice apply even for those who are compiling and distributing it in general terms. The review by Finantsinspektsioon will help finfluencers assess and limit the scope of their activities better in future while remaining within the laws and requirements that apply to the financial sector. It will also give consumers a tool kit for testing the reliability of the information that is being shared so that they can make balanced decisions.

The round table was intended to get feedback on Finantsinspektsioon’s plan to inform society more broadly about the risks associated with influencers. “We wanted to hear what the influencers had to say and their expectations for the approach that Finantsinspektsioon should take. Influencers do valuable work in promoting financial literacy because they help to make complicated issues in investment digestible and accessible for consumers. It is equally important though to explain the responsibility that finfluencers have to consumers when they give advice, and this must be considered as giving investment advice in the regulated financial market”, said Andre Nõmm of the Finantsinspektsioon management board.

The role of Finantsinspektsioon is above all to protect the interests of investors and help maintain an environment for investment where investors can make informed and considered decisions. Finantsinspektsioon emphasises that although finfluencers do not come directly under its supervision, they can have a lot of effect on investors. The main goal in giving this clarification and the priority for Finantsinspektsioon is consequently that the information on investment given by the influencers should be correct, transparent and in compliance with the financial sector regulations. Finantsinspektsioon plans to publish support materials for the activities of finfluencers this November.