Global campaign targets unlawful online money promotions reaching New Zealanders
Seventeen regulators worldwide are taking part in a second Global Week of Action Against Unlawful Finfluencers from 20 April, combining enforcement, regulatory measures, and education campaigns aimed at social‑media money content.
New Zealand’s Financial Markets Authority (FMA) has signed on to the initiative, sharpening the focus on online promotions that could mislead local borrowers and investors.
FMA says its priorities are lifting public awareness of finfluencer risks and reminding influencers and industry participants of the legal boundaries when promoting financial products and services.
Samantha McGuire (pictured), manager regulatory services, warns that consumers are increasingly relying on social media for financial information, exposing them to potentially misleading promotions and even fraudulent products.
“As financial promotions become more prevalent on social media, international collaboration is crucial in our ongoing efforts to strengthen consumer protection, safeguard individuals from misleading financial promotions and support a fair online environment,” McGuire said in a media release.
As part of the campaign, FMA has contacted 14 finfluencers across multiple platforms about concerns with their content. Some material has been removed, including advertisements targeting New Zealanders, and several influencers have reduced services or stopped offering services to local audiences altogether.
Where the line sits for online money content
For mortgage and finance advisers active on social platforms, the week of action underlines the need to keep marketing and educational content firmly within New Zealand’s advice rules.
FMA’s “Talking About Money Online” guide stresses that if you recommend specific financial products or tell people what to do with their money, you may be providing regulated financial advice. That kind of advice is subject to strict rules in New Zealand.
The guide explains that regularly using a platform to recommend or give an opinion on specific financial products – for example, suggesting someone invest in a particular stock, fund or term deposit – is “likely regulated financial advice”. Providing that advice to retail clients without a licence can attract penalties of up to $200,000 for an individual.
Helping clients navigate finfluencer risks
For advisers, FMA’s warnings about online money advice create a useful talking point with clients who arrive armed with TikTok or Instagram tips about property investment, debt consolidation, or refinancing. Pointing borrowers to official FMA resources can help reset expectations, reinforce the value of licensed advice, and reduce the risk that social‑media hype undermines prudent lending and suitability assessments.
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