Understanding the rise of finfluencers Who have become so popular that financial authorities have decided to regulate them

In online spaces, a specific category of content creator is gaining ground: the so-called finfluencers, who talk about financial investments and promote specific ones. These influencers enjoy an ever-growing and young audience, to the point that they have, in some way, forced financial authorities to regulate their work.

Organizations responsible for market oversight - such as central banks and credit institutions - have begun issuing recommendations aimed at those who provide online investment advice, marking a significant shift in their approach. In the past, authorities mainly focused on warning the public about the risks associated with following finfluencers’ advice, often linked to potential scams or rough assessments; now, instead, they are trying to communicate directly with the content creators involved.

Why authorities want to regulate finfluencers

As with traditional influencers, finfluencers also monetize through the promotion and sponsorship of specific products - in this case, related to the investment sector. It is not uncommon to come across creators who operate online in controversial ways (often ironically referred to as “fuffa gurus”), exploiting an audience that is frequently unable to judge the quality and reliability of the proposed financial content in order to obtain financial gain. However, this category of influencers also includes figures who genuinely help spread financial education - even in countries (such as Italy, for example) where the average level of literacy on these topics is rather limited.

The aim of financial authorities seeking to regulate finfluencers is to frame and discipline their activity, clarifying how they must operate in compliance with the law. These are not legally binding obligations, but very strict guidelines designed to distinguish this activity from that of traditional financial advisors. The latter, moreover, can only practice after passing a qualifying exam and being registered with the relevant professional register, unlike finfluencers.

An end to misleading investment promises

Content about getting rich quickly, very common among finfluencers, is at the center of the new regulations. The problem is that finfluencers’ advertising pushes the audience to make impulsive and poorly informed decisions, leveraging promises of high returns. Fast and substantial profits are inevitably associated with equally high financial risks—something finfluencers often fail to point out. If content is deemed misleading, finfluencers can now be held accountable for damages suffered by investors.

Moreover, like traditional influencers, finfluencers are now also required to transparently disclose any compensation received for promoting financial products, using tags such as adv. They must also specify whether they have personally invested in the instruments they present, allowing the public to properly assess any conflicts of interest.