The Autorité des marchés financiers (AMF) and the Autorité de la régulation professionnelle de la publicité (ARPP) will work together to regulate the communication of financial influencers on social networks. The aim is to strengthen consumer protection with regard to products promoted by influencers.
Damage estimated at 500 million euros a year
Nearly 500 million euros a year in losses and 4.5 million euros in losses since 2016. These are the findings revealed by the AMF, ACPR, DGCCRF and the Paris Public Prosecutor's Office at a press conference held on December 13, 2021 "Fighting financial scams". When it comes to scams, new techniques are being developed for an ever-widening customer base.
Fraudulent offers cover a wide range of investments: crypto-currencies, Forex, vineyards, parking spaces, loan redemption, tax refunds...
Authorities regularly warn consumers that "promises of large, quick, risk-free and effortless gains are not realistic".
Despite this, and according to a survey carried out on behalf of the AMF, 64% of French people continue to believe that there are non-risky investments more profitable than savings books.
Creation of a certificate of responsible influence
On social networks, more and more influencers are trying to convert individuals to investing in crypto-assets. The AMF and ARPP have voiced their concerns about deceptive marketing practices targeting young people. On July 21, the two authorities took a further step towards controlling these practices by announcing a strengthening of their collaboration "in favor of clear and responsible advertising in the field of financial products".
More concretely, the AMF and ARPP will create a "responsible influence certificate" for the financial products sector. ARPP will focus on advertising aspects, while AMF will work on the financial products promoted by influencers. Those wishing to obtain certification will need to be trained by the authorities and pass a test. Once the certificate has been obtained, however, it is not valid for ever.
"The idea, once certification has been granted, is to monitor the activity of the influencers concerned," ARPP director Stéphane Martin tells Les Echos newspaper.
In 2021, ARPP had already created a "responsible influence observatory" aimed at better monitoring influence marketing practices, but which did not specifically cover the financial sector.
The new Responsible Influence Certificate, which will be proposed during 2022, should make it possible to "advocate best practices and create training courses for influencers on this type of product", says the AMF.
In recent months, there has been a growing number of cases of abuse by financial influencers. Unaware of the risks involved, many individuals have invested in financial products without being able to recoup their investment.