ASIC to look at unlicensed social media ‘advice’

Those delivering unlicensed financial advice under the guise of social media posts are on notice that they are likely to come to the notice of the Australian Securities and Investments Commission (ASIC).

The regulator’s latest corporate plan has listed “social media advice and influence on retail investment decisions” as one of its new “key actions” within its new Corporate Plan with a high strategic priority.

The strategic plan said that ASIC would be expanding “monitoring of social media platforms and moderators to facilitate the early detection of unlicensed advice and research”.

It said the regulator would also be engaging “with providers to drive behavioural change, monitor unlicensed activity and educate retail investors”.

The ASIC corporate plan has also fired a shot over the bows of superannuation funds signalling particular attention to the manner in which funds communicate with their members when they are deemed to have underperformed.

It said that it would be reviewing mandatory underperformance notifications and other communications by trustees of products that fail to pass the annual performance test “and the communications of a sample of those that do not fail the test, across marketing and distribution channels”.

It said it would be taking regulatory action on non-compliance where appropriate.