Asset Management

EU watchdog throws weight behind crackdown on social media investment ads

Social media stars could be hit with fines or prosecution if they don't abide by the regulator's rules

ESMA has issued a stark warning that if rules are not adhered to, social media stars could be hit with fines or prosecution
ESMA has issued a stark warning that if rules are not adhered to, social media stars could be hit with fines or prosecution Photo: Getty Images

Europe's top markets watchdog has joined the chorus of concern over high-risk investments being promoted on social media.

Amid an increasing tide of so-called 'finfluencers' marketing schemes online, the European Securities and Markets Authority has said investors must be able to "distinguish facts from opinions", and know if the promoters have any conflicts of interest.

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