The CSA and CIRO recently issued new guidance to help finfluencers and the firms that partner with them understand how securities regulations apply to online financial content. The guidance clarifies when online posts may be considered advice, what disclosures are required, and how firms should oversee and manage relationships with finfluencers.
We have long advocated for stronger oversight of social media promotions, including paid endorsements of securities and cryptoassets. We support the CSA and CIRO in providing clear guidance to finfluencers, issuers and registrants to address those concerns.
While this is a positive step, more action is needed. Our recent comment letter outlines several recommendations, including requiring finfluencers who give advice to meet the same licensing and oversight rules as advisors, and limiting payments to one‑time referral fees rather than ongoing compensation that blurs the line into unregistered advice.
We encourage regulators to continue monitoring finfluencer activity and to pursue targeted reviews with transparent reporting.
Why it matters: Finfluencers operate outside the regulatory framework that governs licensed financial advisors. As more investors rely on these unregulated finfluencers for information, they gain broader access to content but face significant investor protection risks. Without oversight, investors are vulnerable to unsuitable advice, undisclosed conflicts of interest, or other potential harms.
For these reasons, the CSA and CIRO should go beyond guidance and actively monitor the activities of unlicensed finfluencers. This oversight is essential to ensure they are not violating registration requirements or putting investors at risk.