Not too long ago, there was a lot ado about nothing over whether or not or not finfluencers in Singapore have to be licensed. And due to the path of the information protection, many individuals are actually underneath the mistaken impression that finfluencers (together with yours actually right here) now have to be licensed.
Let me clear the air as soon as and for all:
Finfluencers do NOT have to be licensed in Singapore.
This large false impression began on 13 November, after the Straits Instances revealed a information article with the next selection of headline:
Because of this, it has prompted a giant hoo-ha over nothing, together with reactions from numerous different media retailers which have continued to select up on this piece of reports (which I deem as deceptive), particularly contemplating there was no change to MAS’ stance relating to finfluencers.
There are a couple of key information to be identified right here:
- Over the previous 5 years, MAS had obtained a mean of fewer than 5 complaints per yr in opposition to finfluencers.
- MAS and the Industrial Affairs Division will take enforcement motion in opposition to people offering monetary recommendation with no licence. Enforcement motion has been taken in opposition to six people, none of whom was a finfluencer, over the previous three years.
- A finfluencer who supplies monetary recommendation must be appointed as a consultant of a monetary advisory agency.
- The authorities usually advises the general public to cope with and make investments by means of solely individuals regulated by the MAS.
Sadly, anybody studying simply the information headlines as a substitute of diving into particulars and getting the phrase from the horse’s mouth instantly (i.e. the Financial Authority of Singapore, on this case) has fully missed the purpose – or worse nonetheless, grossly misinterpreted the complete scenario.
In our finfluencer circle, many people have since been questioned by numerous manufacturers and monetary establishments (who work with us for advertorials or sponsored academic items) and requested to point out proof of our licence.
But, we should not have one, as a result of there presently exists no licence that enables for us to function the best way we do with out having to solicit or meet gross sales KPIs.
The present necessities to be eligible for and apply for a monetary licence are outlined by MAS right here. There are completely different licence varieties and exams for every completely different kind of monetary service and funding class of product. An insurance coverage agent has to sit down for insurance coverage exams with a view to offer you skilled recommendation on insurance coverage merchandise and insurance policies. An funding banker wants to sit down for investment-related exams (and there’s a complete bunch for the completely different lessons of funding merchandise) earlier than he can advise you on them.
Although your private funds span throughout your insurance coverage protection, property internet property and funding portfolios, there isn’t a single licence that may enable anybody to offer you recommendation throughout all of those in Singapore. Let’s get this straight.
What’s extra, MAS has made it very clear that solely “people conducting monetary advisory actions on behalf of licensed FAs or exempt FAs have to be appointed as representatives”. In Singapore’s present finfluencer panorama, there are solely a really small handful of finfluencers – outlined as people or media manufacturers who covers finance-related matters and have a big social media following on-line – who conduct these monetary advisory actions. Those I do know of do certainly maintain a license and go on to just accept or handle their followers-turned-clients’ funds for them.
Finfluencers like myself, The Woke Salaryman (500k followers) Kelvin Learns Investing (100k followers), Adam Khoo (1 million followers) and even dealer Rayner Teo (2 million followers), don’t absorb our followers cash to take a position or handle it on their behalf. As a substitute, what we put out is monetary schooling i.e. clarify monetary ideas, information, execs and cons, and so on. We usually educate our followers turn out to be higher at managing their personal cash.
Due to the aftermath, I’ve since written to the authorities to make clear instantly if media manufacturers similar to SG Price range Babe (and some of my finfluencer mates) are required to be licensed consequently. Right here’s MAS response:
“We wish to guarantee you that there isn’t a change in MAS’ coverage place and the two-stage check within the Tips on Provision of Monetary Recommendation stay related in assessing whether or not an individual is carrying on a enterprise of offering a monetary advisory service.
On this regard, content material that are factual data on monetary terminology and primary options of insurance coverage or funding merchandise, in addition to normal, non-personalised concerns on the significance of financial savings (e.g. suggestions for financial savings or spending properly) or what a client ought to look out for earlier than buying monetary merchandise, wouldn’t be thought of monetary recommendation.
We have now up to date the FAQs on Monetary Advisers Act, Monetary Advisers Laws, Notices and Tips (see Part I FAQ 12) to make clear MAS’ place on whether or not finfluencers require licensing underneath the Monetary Advisers Act. Finfluencers ought to apply the two-stage check to guage whether or not their actions quantity to the supply of monetary recommendation.”
The up to date tips by MAS, revealed very lately on 28 November 2024 right here, clearly state right here that almost all of finfluencers don’t have to be licensed:
I’ve written to the unique journalist of the article that began this entire saga, however sadly, she has ignored my e-mail and there’s nonetheless no replace on her piece:
Prime Minister Lawrence Wong has additionally addressed this explicitly (together with in response to my title) throughout his current speech beneath. He made it very clear that even when the federal government have been to control native finfluencers like Price range Babe, the inhabitants can nonetheless entry data by abroad finfluencers which may very well be much more detrimental.
“Even when we regulate in Singapore, it’s an open Web. You will get all kinds of recommendation on the Web, and we will’t cease individuals from accessing this stuff on-line.
If you already know of any specific influencers who’ve crossed the road, tell us and we could have a pleasant dialog with them.”
– Prime Minister Lawrence Wong, 2 July 2024
So far as I do know, none of my finfluencer mates or myself have been referred to as up for a “kopi chat” with the authorities up to now. Do you actually suppose they’re not watching our work, particularly when people are naming us explicitly in these dialogue classes with the ministers?
Bear in mind outstanding abroad Youtubers of the earlier period together with CryptoNick, whom I referred to as out right here? Or these US-based influencers who have been charged by the SEC for his or her inventory manipulation schemes promoted on Discord and Twitter? Or Logan Paul, who’s being accused of deceptive his followers (which embrace Singapore-based followers, by the best way) over crypto investments which have since misplaced cash?
Are finfluencers actually a systemic danger right here?
In at present’s world, even finance manufacturers are selecting to rent life-style influencers and celebrities to advertise their platform and monetary merchandise. Bear in mind EndowUs’ adverts that includes Joanne Peh and Benjamin Kheng, that have been so prominently plastered throughout our MRT stations? Or YouTrip working with meals and journey creator Aiken Chia, or how about buying and selling app Octa working with well-liked Youtubers Benranaway, Mayiduo and Simon Boy?
Adultery and buying and selling? These movies, promoted by Mayiduo and Simonboy, reached over 1 million views mixed. In distinction, most of us finfluencers don’t even command such an enormous attain…and neither will we need to be related to Octa, which coincidentally occurs to be on the MAS Investor Alert Checklist.
I’ve been supplied gigs by foreign exchange and CFD buying and selling platforms as nicely, which I’ve repeatedly turned down. Want proof? Right here’s me turning down XM regardless of repeated affords in the previous few years, as a result of I’m acutely aware that not all of my followers might be able to handle the (increased) dangers concerned in FX and CFD buying and selling and thus I’ve zero curiosity in selling such a message to them:
However right here’s what Ryan and Jonathan inform their followers about CFD buying and selling as a substitute:
“That you must commerce futures or foreign exchange, and it must be a leveraged commerce. In case you’re taking a look at crypto, you most likely have to go 20 / 50 / 100x. And if it’s foreign exchange, most likely a 1000 instances leverage. Funding requires a very long time horizon. What buying and selling futures assist you to do is you can also make first rate earnings whether or not it goes up or goes down. In reality, the extra it goes down and also you brief the market, you can also make cash.”
– Johnathan Chua, 2 November 2024
And who can neglect Tammy Tay, who opportunistically rode on the earlier crypto bull run to launch her NFTs for over S$400 every? The final I checked, these NFTs are hardly value something now. She later then disclosed on an interview with Jianhao Tan and Xiaxue that she misplaced 1,000,000 {dollars} which was why she needed to flip to doing grownup content material on OnlyFans. The curious query is, how a lot of that was from the crypto investments that she made (and was additionally recommending on Instagram to her followers)?
“”I’ve misplaced over 1,000,000 {dollars}. It took 10 years to construct my life financial savings, and it took solely 2 years for me to lose all of it.”
Bitcoin is now at over $100,000. If Tammy Tay purchased Bitcoin between 2020 – 2022, even when on the peak of $60,000 then, she would nonetheless be within the inexperienced now. However, did she?
Finfluencers dare to talk out and name out BS
It is usually value stating that finance isn’t the best subject to sort out. It is usually a really slender area of interest – you’ll get higher traction (and sponsors cash) in case you turn out to be a way of life, journey or magnificence influencer as a substitute. However most of us select to do it as a result of we really feel keen about educating individuals about finance, and occur to grasp finance just a little higher than the common particular person.
This additionally means we will additionally scent out b*llsh*t once we see it within the sector.
Want a current instance? Many people spoke out in opposition to Belief Financial institution’s current card launch, the place they employed many life-style and journey influencers to advertise the “15% cashback” supply. We referred to as it out for the deceptive promoting, and highlighted how the best cashback end result you’ll ever get on the cardboard was nearer to 4+% and by no means wherever close to 15%, in contrast to what others would have you ever imagine. Just a few of us then obtained an e-mail from CASE in a while to thank us for bringing it up, and who stated that that they had since spoken to Belief Financial institution to right the deceptive claims. Psst, the correction was made approach past the marketing campaign run dates, the place it most likely reached hundreds of thousands of eyeballs throughout that interval.
There was actually no finfluencer who promoted Belief Financial institution’s card as having 15% cashback. Zero. However there have been loads of non-finfluencers who did.
If finfluencers must be licensed, then how about non-finfluencers who promote monetary messages like foreign currency trading, leverage and deceptive bank card affords?
Is licensed recommendation essentially higher?
Final however not least, allow us to not neglect that extra shoppers have misplaced cash by taking the “recommendation” of licensed practitioners fairly than listening to finfluencers:
To have a license at present, you should turn out to be a registered consultant of a agency providing regulated monetary companies. This license often comes with a number of necessities, together with gross sales KPIs – however most of us finfluencers have zero curiosity in promoting insurance coverage insurance policies or funding plans to our followers; we’re extra motivated to show them turn out to be savvier and handle their cash higher themselves.
The licensed professionals ask you at hand their cash over to them to handle for you (at a payment), whereas we finfluencers inform you to by no means give your cash to us underneath any circumstances.
So…is there even a related licence for us to get?
