The Securities and Futures Commission (SFC) is joining regulators across the globe to curb activities of unlawful financial influencers (finfluencers) who are putting millions of social media users at risk by touting financial products or services illegally (Note 1).
Recognising that unlawful finfluencer activity is a global phenomenon that often transcends borders and that international cooperation is vital to countering this problem, the SFC and other members of the International Organization of Securities Commissions (IOSCO) are participating in the “Global Week of Action Against Unlawful Finfluencers” during the week of 2 June 2025 (Notes 2 and 3).
This initiative involves regulators using a combination of supervisory and enforcement powers to disrupt illegal activities of finfluencers, coupled with educational schemes and consumer awareness programmes to remind investors the risk of investing after encountering misleading content from finfluencers.
Ms Julia Leung, the SFC’s Chief Executive Officer and Chair of the IOSCO Asia-Pacific Regional Committee, said: “The SFC fully supports a globally coordinated and multi-pronged approach to addressing the growing phenomenon of unlawful finfluencers and their wide followings on social media. Working in concert with our regulatory counterparts will enhance the SFC’s own effectiveness in safeguarding market integrity and protecting the investing public through supervisory oversight, enforcement actions and investor education.”
“As part of our education efforts, we must emphasise the importance of personal responsibility. Investors should serve as their own first line of defence by verifying the regulatory status and trustworthiness of the finfluencers, critically evaluating any investment ideas from them, and conducting thorough due diligence on any prospective investments before committing,” Ms Leung added.
SFC’s supervisory actions
On the supervisory front, the SFC commenced a thematic inspection in April 2025 to assess securities brokers’ compliance with applicable regulatory requirements when engaging finfluencers and digital platforms to market financial products and services. The scope of the inspection ranged from reviewing selected securities brokers’ due diligence to evaluating their monitoring of finfluencers and digital platforms to ensure that they are not involved in any unlicensed activities or improper practices.
As part of its supervisory efforts, the SFC plans to issue guidance to licensed corporations outlining expected standards when engaging finfluencers and digital platforms for marketing purposes.
SFC’s enforcement actions
The SFC has undertaken a broad array of enforcement actions against unlawful finfluencer activities, including suspending the licence of a finfluencer who was criminally convicted for providing investment advice via a chat group beyond the scope of his licence, as well as commencing criminal prosecution against another finfluencer for unlicensed regulated activities (Note 4).
As part of its pro-active regulatory efforts, the SFC pressed an overseas virtual asset trading platform to stop targeting the Hong Kong public by terminating affiliate arrangements with finfluencers, as well as engaging social media platforms to remove social media posts and profiles impersonating public figures and promoting unauthorised investment products. We also disrupted an event conducted by unlawful finfluencers through a search operation, during and after which we issued cease-and-desist letters to these finfluencers.
Investor education
The SFC has been warning the public about scammers impersonating or posing as finfluencers on social media through its long-established Alert List system and encouraged them to utilise IOSCO’s newly revamped global warning system, the International Securities & Commodities Alerts Network (I-SCAN) (Notes 5 and 6).
As part of its ongoing “Don't be Sucker” anti-scam publicity campaign, the SFC cautions the public against finfluencer-related pitfalls and other common investment scam tactics through, among others, an original theme music video and numerous posts on its dedicated anti-scam Instagram page, above-the-line advertisements, seminars for the industry and the investing public and community outreach (Note 7).
From May to June 2025, this messaging is further amplified through mass media advertisements and a feature story on TV. In the coming months, the SFC will launch more targeted communications to build up anti-scam awareness and thus resilience of the investing public.
Notes:
1. Finfluencers are social media personalities who use their platforms to promote financial products and share insights and advice with their followers. While many are acting legitimately and not breaking any laws, some may be touting financial products or services illegally and without authorisation through online videos and posts, where they use the pretence of a lavish lifestyle, often falsely, to promote success. These individuals may not be licensed by the SFC to give advice on securities and futures contracts to investors in Hong Kong.
2. IOSCO is a global body of securities regulators that develops and promotes adherence to internationally recognised standards for securities regulation. Its members oversee more than 95% of the world’s securities markets across over 130 jurisdictions.
3. Other IOSCO members participating in the “Global Week of Action Against Unlawful Finfluencers” are:
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- Alberta Securities Commission, Alberta, Canada
- Autorité des marchés financiers, Quebec, Canada
- Australian Securities and Investments Commission, Australia
- British Columbia Securities Commission, Canada
- Commissione Nazionale per le Società e la Borsa, Italy
- Financial Conduct Authority, United Kingdom
- Ontario Securities Commission, Ontario, Canada
- Securities and Commodities Authority, United Arab Emirates
4. Please see the SFC’s press release about the conviction dated 20 June 2024, the SFC’s press release about the disciplinary action dated 20 March 2025 and the SFC’s press release dated 8 May 2025 about the commencement of criminal proceedings.
5. Please visit the SFC’s Alert List for further information.
6. Please visit IOSCO’s I-SCAN.
7. Please see the SFC’s press release on the campaign launch dated 13 December 2024.
“Don’t be Sucker” campaign highlights common scam scenarios, including deceptive tips from unlawful finfluencers.
