Research director Angélique Bernabé outlines how advisors can respond to social media-driven investing
The growing influence of financial influencers is reshaping how Canadians make investment decisions, but advisors still have a critical role to play, if they adapt, according to new research and industry insights.
A report released today (May 5) by the Securities and Investment Management Association (SIMA) examines how “finfluencers” are changing the financial information landscape, particularly among younger and self-directed investors.
While the trend is expanding access to financial content, it is also raising concerns about misinformation, conflicts of interest, and investor harm.
The findings point to a structural shift: investors are no longer relying on a single source of advice. Instead, many (especially younger cohorts) are blending professional guidance with social media content, creating what SIMA describes as a new class of “hybrid investors.”
Advisors must rethink their role
That shift should fundamentally change how advisors position themselves, Angélique Bernabé, director of research at SIMA, told WP.
“The rise of hybrid investors signals that finfluencers are not replacing advisors: they are supplementing them,” she said. “Positioning should shift from being the primary source of information to being the trusted interpreter and decision partner in an increasingly noisy information environment.”
The report shows that most investors now draw on a mix of formal and informal sources, with younger Canadians far more likely to incorporate social media, online forums, and other digital tools into their decision-making.
At the same time, finfluencer audiences are not limited to inexperienced investors. Higher-income, educated, and self-directed individuals, many of whom consider themselves financially knowledgeable, are among the most frequent users.
“Yes, it challenges the assumption that vulnerability is limited to inexperienced investors,” Bernabé said. “Our data shows that self-identified experts and DIY investors are among the most likely to rely on finfluencers. This suggests that vulnerability is less about experience and more about the gap between perceived and actual knowledge.”
The report identifies that gap as a key risk, noting that confidence can rise faster than competence when investors are exposed to simplified, persuasive content online.
It also highlights a “popularity-quality disconnect,” where highly visible content gains credibility through likes and followers rather than proven investment skill. Research cited in the report shows that many finfluencers deliver poor or even negative outcomes for followers, despite large audiences.
Turning client conversations into opportunities
For advisors, that creates both a challenge and an opportunity.
“Advisors are encouraged to not dismiss finfluencer content as clients are engaging with it because it is embedded in their daily digital lives,” Bernabé said. “A constructive approach is to contextualize rather than counter: help clients assess the content critically by explaining how popularity and engagement often do not reflect quality or suitability.”
Rather than competing directly with free, fast-moving online content, advisors should lean into what differentiates them: personalized guidance, accountability, and alignment with long-term goals.
“Advisors should not try to compete on the same terms, because that’s not where their advantage lies,” Bernabé said. “The goal is not to replicate finfluencers, but to complement that ecosystem with trusted, decision-grade guidance.”
The report underscores that finfluencers are filling a convenience gap, offering accessible and engaging content that fits into investors’ daily digital routines. But that accessibility can come at a cost, particularly in speculative areas such as cryptocurrency, where misinformation and fraud risks are elevated.
SIMA president and CEO Andy Mitchell said the industry must respond to these changes without losing sight of investor protection.
“As more Canadians turn to digital sources for financial information, our industry must adapt to protect investors and strengthen market integrity,” said Andy Mitchell, President and CEO, SIMA. “While our research and analysis show that trust in financial advisors remains strong, we encourage efforts to modernize the future of advice for the benefit of all Canadians.”
Building trust in a digital-first environment
Bernabé said advisors can remain competitive by improving how they engage digitally—through timely insights, curated content, and communication that meets clients where they are.
“Relevance will depend on engagement, not just expertise,” she said. “Ultimately, the opportunity is not to compete with finfluencers on reach, but to anchor trust in a fragmented, digital-first environment.”
The report also calls for a coordinated regulatory response to address the imbalance between licensed advisors and largely unregulated online creators. It suggests clearer rules around when content becomes advice, greater accountability for those profiting from financial promotions, and increased use of technology to monitor activity across platforms.
“Importantly, the goal is not to over-regulate content creation, but to ensure that similar activities are subject to similar standards of accountability,” Bernabé said.
As investors continue to navigate a growing volume of online financial content, the study argues that the role of advisors is evolving from primary information providers to trusted guides helping clients interpret and act on what they see.
