AMF and OSC target illegal promotions as global regulators clamp down on social media finfluencers
Unregistered investment advice and misleading crypto promotions dominated the findings as the Ontario Securities Commission (OSC) reviewed 87 finfluencers and 9 issuers during the Global Week of Action Against Unlawful Finfluencers.
The OSC identified a range in the quality and accuracy of information shared online, with several finfluencers offering investment advice without registration and others spreading false or misleading content—particularly in the cryptocurrency sector.
The initiative involved in-person warnings, evidence gathering, interviews, and public awareness efforts.
The OSC thanked the RCMP’s Integrated Market Enforcement Teams (IMET) for their support in the exercise.
“We are pleased to have played an important part in disrupting harmful finfluencer activity,” said Bonnie Lysyk, executive vice president, Enforcement at the OSC.
She added that international relationships are vital in countering the growing issue, and noted that the OSC’s recent research highlights the substantial influence social media personalities have on investor behaviour, reinforcing the need for proactive intervention.
The OSC’s participation followed behavioural science experiments and its study, Social Media and Retail Investing: The Rise of Finfluencers, which found that social media content significantly affects retail investors’ financial decisions.
Investors are encouraged to check the registration status of individuals or firms offering investment opportunities and to access educational tools at OSC’s website.
In Québec, the Autorité des marchés financiers (AMF) also joined the global enforcement week, which ran from June 2 to 6, alongside regulators in Canada and internationally.
The AMF aimed to raise awareness of risks tied to financial advice on social media and to address potentially illegal activity among local finfluencers.
The AMF’s investigators contacted Québec influencers with a combined audience of over one million, warning them or requesting content removal.
In more serious cases, it launched investigations. It also published a webpage explaining the rules influencers must follow to comply with the law.
“Most finfluencers are acting within the framework of the law,” said Éric Jacob, executive director, AMF Enforcement.
He added that some are touting products or services without being registered with regulators, while others make false promises of a lavish lifestyle or easy profits.
He also said that working with other regulators reinforced efforts to raise awareness and address unlawful conduct affecting consumers' finances.
To educate consumers, the AMF released short videos featuring investigators and launched a webpage urging the public to use critical thinking when evaluating financial content online.
The OSC’s mandate includes protecting investors from fraudulent practices, fostering efficient and competitive capital markets, supporting capital formation, and contributing to financial system stability.
The AMF regulates sectors such as securities, derivatives, insurance, mortgage brokerage, and financial product distribution.
