In Southeast Asia, regulators are tightening their oversight of monetary providers advertising and marketing, inserting monetary establishments below stress to observe agent habits, mitigate misinformation, and preserve model belief.
A brand new paper by Meltwater, a web-based media, social and client intelligence firm from Norway, seems to be at how regulators are cracking down on unethical habits corresponding to deceptive promoting and high-pressure gross sales techniques, highlighting latest regulatory developments amid the surge of monetary influencers (finfluencers).
In Malaysia, Securities Fee (SC) launched in March 2025 a revised model of its Pointers on Promoting for Capital Market Merchandise and Associated Companies, making an allowance for evolving world and home developments, together with the rise of social media.
The revised framework, which goals to make sure accountable promoting actions in relation to capital market services, introduces new necessities for finfluencers who should not engaged as advertising and marketing brokers by an advertiser however but promote capital market merchandise. It additionally strengthens advertisers’ tasks to make sure compliance by their brokers, establishes guidelines on the usage of social media for monetary promotions, and prohibits promoting providers in Malaysia by individuals not licensed by the SC.
The framework will come into impact on November 01, 2025,
Indonesia additionally launched a brand new regulation this 12 months via the Monetary Companies Authority, aiming to consolidate and modernize guidelines for securities underwriters and brokers, whereas additionally introducing a brand new class of regional securities corporations.
Taking impact on December 11, 2025, the regulation notably formalizes the usage of social media influencers as a official promotional channel, however outlines clear fashions of collaboration. It explicit, it requires written agreements and compliance with licensing requirements, and places restrictions on influencer actions.
Amongst different issues, social media influencers might act as promoting platform and/or share details about the capital market, however they can not invite potential prospects to turn out to be prospects of PPE and PED, and should not permitted to supply any private assessments or evaluation. Monetary establishments should additionally make sure that their influencer companions meet all relevant qualification and licensing necessities in accordance to the chosen collaboration mannequin.
In Singapore, the Financial Authority of Singapore (MAS) requires monetary establishments to make sure that ads are honest, balanced, and never deceptive. Product ads are to be clear and legible to make sure that monetary ads convey correct data. These measures purpose readability and understanding by the patron, and facilitate extra clear and moral promoting.
MAS additionally prohibits the ads of digital belongings via any public channel, together with tv, social media, and bodily billboards, citing the excessive dangers of cryptocurrencies, that are unsuitable for most people as a consequence of their volatility. Crypto providers suppliers are additionally prohibited from advertising and marketing via third events, together with social media influencers.
This pattern extends throughout the broader APAC area. In Hong Kong, for instance, the Insurance coverage Authority (IA) launched in 2024 tighter rules, strengthening moral conduct from corporations throughout its insurance coverage sector to make sure fairer remedy and robust safety of insurance coverage prospects, significantly within the sale of long-term and medical insurance coverage insurance policies.
The IA’s tips set necessities on product design, disclosure of clear and satisfactory data, monetary wants evaluation, profit illustrations, coverage substitute, cooling-off intervals, and the usage of items in promotions. It additionally mandates post-sale controls and acceptable remuneration buildings to attenuate conflicts of curiosity.
The rise of finfluencers and accompanying dangers
Finfluencers are social media influencers who provide recommendation and data on numerous monetary matters, together with saving, investing, and cryptocurrencies. They use social media platforms like YouTube, TikTok, and Instagram to supply recommendation in fast, participating and easy-to-digest content material types, specializing in simplifying complicated monetary ideas.
Although finfluencers have helped make intricate topics extra accessible and lift consciousness about private finance, their rise has additionally launched important dangers. In contrast to licensed funding advisors who should register with regulators and meet skilled {qualifications}, finfluencers bypass these necessities.
Moreover, finfluencers generate revenue via unrelated incentives corresponding to platform monetization, model promotions, or affiliate marketing online, whereas monetary advisors usually earn charges or commissions tied to shopper providers. Therefore, their focus is usually on rising their on-line presence relatively than defending shopper pursuits.
Excessive-profile circumstances illustrate these dangers. In 2022, actuality star Kim Kardashian was fined US$1.26 million by the US Securities and Alternate Fee (SEC) for touting on social media a crypto asset safety supplied and bought by EthereumMax with out disclosing the fee she obtained for the promotion. Soccer participant Tom Brady and NBA star Shaquille O’Neil had additionally promoted FTX earlier than the crypto buying and selling platform collapsed.
And but, reliance on social media for monetary recommendation continues to develop. A 2024 MoneySmart survey of two,000 adults in Hong Kong and Singapore discovered that 52% relied on social media as their main supply of monetary recommendation, forward of household, pals, monetary advisors, and books. Platforms corresponding to YouTube, Instagram and Fb emerged as the most well-liked for accessing monetary insights.
Almost half (43%) of these surveyed mentioned social media improved their monetary information, with 19% utilizing it each day to hunt monetary ideas and recommendation.
But, the dangers are actual. Virtually 1 in 5 (18%) respondents misplaced cash on investments influenced by on-line recommendation, and an extra 14% fell sufferer to monetary scams after following social media suggestions. Amongst those that adopted social media recommendation, 9% reported substantial monetary losses.
Featured picture: Edited by Fintech Information Singapore, primarily based on pictures by aukid and freepik by way of Freepik
