In an era where financial advice increasingly pours from social media screens, the credibility and responsibility of “finfluencers” have come under scrutiny. France has responded by launching a “Responsible Influence Certificate,” a voluntary certification program to regulate financial sector influencers, including those promoting cryptocurrencies. This initiative, initiated by the Autorité des Marchés Financiers (AMF) and the Autorité de Régulation Professionnelle de la Publicité (ARPP), seeks to professionalise the industry and protect investors.
The Growing Role of Influencers in Finance
Younger generations have recently turned to social media influencers for financial advice. Popularly known as “influencers,” these individuals have gained prominence on platforms like Instagram and TikTok, where they share investment and trading tips. Recognising this trend, French regulators have ensured these influencers provide accurate and responsible information to their followers.
To obtain the “Responsible Influence Certificate,” influencers must pass an exam with a minimum score of 75%. This exam comprises 25 multiple-choice questions and covers various aspects of financial promotion. Importantly, this certification is optional in the influencer’s journey and is available only after completing a more comprehensive “general” certificate.
Expanding the Curriculum
Initially introduced in 2021, the “Responsible Influence Certificate” was updated in September 2023 to include cryptocurrencies, digital assets, and traditional financial products such as equities, bonds, ETFs, funds, and derivatives. It is worth noting that this certification program deliberately excludes subjects related to banking and insurance.
The Imperative for Certification
The influencer market, primarily populated by young and legally inexperienced individuals, has faced numerous challenges. A 2021 study by the ARPP revealed that 25% of influencers did not adequately disclose their brand associations, raising concerns about transparency and integrity in the industry. This discovery led to introduction of the influencer certification program to address these issues.
The French government’s objective with this certification is to equip financial influencers with the knowledge and responsibility to guide their followers and protect potential investors. By providing a clear framework and certification process, France aims to set higher standards for financial influencers and enhance trust in the industry.
Legal Complexities in the World of Crypto Influencers
Despite these developments, crypto influencers face unique legal challenges. Earlier in the year, a high-profile case brought attention to the issue when Edwin Garrison filed a $1 billion class-action lawsuit against “FTX influencers” and related parties. The lawsuit alleged that eight YouTubers and a talent management entity failed to disclose sponsorship ties and lacked proper due diligence when promoting crypto products.
France’s certification program is a proactive step towards addressing such issues by establishing guidelines and expectations for crypto influencers. While the “Responsible Influence Certificate” remains optional, it is a valuable tool for influencers to demonstrate their commitment to responsible financial promotion.
In conclusion, as the role of influencers in finance continues to grow, the need for responsible and informed guidance becomes paramount. France’s “Responsible Influence Certificate” represents a significant stride towards professionalising the industry, ensuring transparency, and safeguarding investors. While it remains optional, it sets a positive precedent for influencer regulation in France and potentially as an example for other countries considering similar initiatives.
