Quick Quote
One simple enquiry form gives you fast access to quotes and rate comparisons from Australia's leading and best known debt consolidation specialists.
All quotes are supplied to you free and without any obligation. We respect your privacy.
Knowledgebase
Leverage:
The use of borrowed funds to increase the potential return of an investment, but which also increases potential risk.
Debt Consolidation Australia :: News
SHARE

Share this news item!

ASIC Cracks Down on Risky Financial Influences

ASIC Cracks Down on Risky Financial Influences

ASIC Cracks Down on Risky Financial Influences?w=400
The Australian Securities and Investments Commission (ASIC) has issued warnings to 18 social media influencers actively promoting high-risk financial products without the necessary licence.
The move is part of a broader initiative to curb unlicensed financial advice in the online sphere, where influencers often lure young audiences with glamorous lifestyles while dispensing questionable investment tips.
ASIC has identified these so-called "finfluencers" as operating in breech of the Corporations Act by promoting complex financial products like derivatives without proper authorisation.

ASIC Commissioner Alan Kirkland emphasized the global nature of this enforcement action, aligning with efforts by international regulators to safeguard consumers from potentially misleading online advice. The regulator insists that influencers must ensure their financial counsel is lawful and demands clarification from those flagged on how they plan to comply with regulatory requirements. Failure to address these concerns may lead to further action from ASIC.

The reach of these finfluencers often extends beyond public posts into private spaces, where direct messaging is used to promote associated investments. ASIC warns that such manoeuvres still fall under the jurisdiction of financial services laws, regardless of their private nature.

The initiative coincides with a Global Week of Action Against Unlawful Finfluencers, with global counterparts such as the UK, UAE, Hong Kong, and Canada also taking measures to address the proliferation of unauthorised financial advice. In recent years, the UK Financial Conduct Authority announced its own response to this trend, removing non-compliant websites and running consumer awareness programs to educate the public about safe online financial interactions.

In Australia, ASIC has a precedent for taking action against rule-breaking finfluencers. Notably, in 2022, the Federal Court found renowned social media personality Tyson Robert Scholz guilty of contravening the Corporations Act, as he conducted financial business operations without a licence. His cases highlighted the significant fines and potential imprisonment penalties for non-compliance, emphasizing the gravity of these regulatory requirements.

More than ever, consumers are advised to be discerning about the sources of their financial advice. With ASIC's professional register available as a tool to verify credentials, the public is urged to distinguish between popularity and credentialed expertise. Commissioner Kirkland underscores the need to ensure that influencers genuinely possess the necessary credentials before consumers act on any financial advice given online.

Published:Thursday, 12th Jun 2025
Source: Paige Estritori

Share this news item:

Finance News

Australia's Unsustainable Financial Outlook Raises Concerns Australia's Unsustainable Financial Outlook Raises Concerns
16 Jul 2025: Paige Estritori

Recent admissions from the Treasury reveal Australia's precarious financial situation, with significant implications for the nation’s economic stability. A report from credit ratings firm S&P last month highlighted that the combined budget deficits of Australia’s state and federal governments total $52 billion. Furthermore, the country's net debt has already surpassed 60% of GDP, showcasing a challenging fiscal scenario. - read more
RBA Proposes Ban on Card Payment Surcharges RBA Proposes Ban on Card Payment Surcharges
15 Jul 2025: Paige Estritori

The Reserve Bank of Australia (RBA) has proposed eliminating surcharges on debit and credit card transactions, a move that impacts all major card providers such as Mastercard, Visa, and eftpos. As revealed in a newly released consultation paper, the RBA cites the $1.2 billion annual cost to consumers, highlighting inefficiencies and advocating for a unified approach to card payments. - read more
Future2 Foundation Seeks Nominations for Financial Wellbeing Grants Future2 Foundation Seeks Nominations for Financial Wellbeing Grants
15 Jul 2025: Paige Estritori

The Future2 Foundation has opened nominations for its annual Make the Difference Grants, providing financial support to initiatives that enhance financial wellbeing across Australia. Financial services professionals have until August 21 to nominate local projects aimed at improving financial literacy, assisting those in poverty, supporting disadvantaged women, and benefiting regional and remote communities. - read more
Increasing Number of Qualified Financial Advisers Opt Out of Practice Increasing Number of Qualified Financial Advisers Opt Out of Practice
11 Jul 2025: Paige Estritori

Recent analysis from WealthData indicates a growing trend among financial advisers in Australia, where a significant portion of those who have successfully passed the financial adviser exam are opting not to practice. As of now, 5,096 individuals, representing 33.31% of active advisers, have chosen not to proceed into practice after passing the exam—up from 28.36% a year prior. - read more
Melbourne's Housing Market: A Prime Opportunity For Buyers Melbourne's Housing Market: A Prime Opportunity For Buyers
11 Jul 2025: Paige Estritori

The Reserve Bank of Australia (RBA) recently surprised many by maintaining the interest rate at 3.85%, against expectations of a cut. This decision is seen as a measure to continue moderating inflation, but it simultaneously delays potential spikes in the housing market, providing a favorable window for prospective homebuyers. In particular, Melbourne's current market presents significant value, offering a promising opportunity for those looking to enter the property market. - read more


Debt Consolidation Articles

The Ultimate Guide to Managing Personal Debt: Tips and Tricks The Ultimate Guide to Managing Personal Debt: Tips and Tricks
Managing personal debt effectively is crucial for maintaining financial stability. Debt, when left unchecked, can quickly spiral out of control, leading to financial stress and a host of other problems. - read more
Monitoring Your Progress: Tracking Financial Goals Post-Debt Consolidation Monitoring Your Progress: Tracking Financial Goals Post-Debt Consolidation
Welcome to our blog, where we're dedicated to helping you make the most of your financial journey. Today, we're going to delve into an important aspect of financial health: tracking your progress after debt consolidation. - read more
Common Mistakes to Avoid When Consolidating Debts Common Mistakes to Avoid When Consolidating Debts
Welcome to our guide on avoiding common mistakes when consolidating debts. We're glad you're here, as taking the time to educate yourself is a crucial step towards financial well-being. - read more
How to Track Monthly Expenses for Better Debt Management How to Track Monthly Expenses for Better Debt Management
In the realm of financial wellness, tracking your monthly expenses is a crucial step towards effective debt management. Many Australians grapple with the challenges of keeping their debts under control, particularly in a dynamic economic environment. - read more
The Reality of Debt Consolidation: Does it Affect Your Ability to Borrow in Future? The Reality of Debt Consolidation: Does it Affect Your Ability to Borrow in Future?
Welcome to a comprehensive guide aimed at dismantling the common myths that cloud the concepts of debt consolidation and debt reduction. Amidst widespread financial stress, debt consolidation emerges as a popular strategy for Australians in search of relief from their monetary burdens. - read more
Proven Strategies for Australians to Improve Credit Scores Proven Strategies for Australians to Improve Credit Scores
Welcome, readers! We're here to talk about something incredibly important yet often overlooked: improving your credit score. Your credit score is a financial report card used to evaluate your creditworthiness, and it can have a significant impact on your ability to secure loans, mortgages, and even rental agreements. - read more
How to Craft a Foolproof Financial Strategy for Debt Management How to Craft a Foolproof Financial Strategy for Debt Management
Managing debt is a crucial aspect of maintaining financial well-being, yet it can often feel like a daunting task. Understanding how debt works and its potential impact on your life is the first step toward gaining control of your finances. In this section, we will delve into the intricacies of debt and outline why a solid financial strategy is essential for effective debt management. - read more
Managing Your Credit Card Debt Wisely in Tough Economic Times Managing Your Credit Card Debt Wisely in Tough Economic Times
In light of the current economic challenges facing many Australians, managing credit card debt has become more crucial than ever. With rising living costs and financial uncertainty, accruing debt on high-interest credit cards can quickly escalate from a manageable inconvenience to a stressful financial burden. - read more