South Africa’s Financial Sector Conduct Authority (FSCA) is facing renewed pressure to clarify its stance on financial influencers, following concerns formally raised by its Consumer Advisory Panel in its first annual report.
The issue was elevated earlier this year when the regulator indicated it was reviewing how so-called “finfluencers” fit within existing legislation, particularly the Financial Advisory and Intermediary Services Act. The Act prohibits the provision of unauthorised financial advice, raising questions about whether online personalities promoting investment products may fall foul of regulatory requirements.
The 11-member panel, established in November 2023 under the Financial Sector Regulation Act, serves as a formal advisory body representing retail financial customers. According to Citywire South Africa, the panel’s inaugural report, covering the period to 31 March 2025, identified finfluencers as an emerging risk requiring regulatory attention.
The regulator’s own preliminary research, referenced in its December newsletter, found the finfluencer ecosystem to be varied, spanning licensed advisers, content creators and individuals with no formal accreditation. The FSCA noted that while some influencers help demystify complex financial concepts for younger and digitally engaged audiences, unverified advice can expose consumers to misinformation, unsuitable products and potential scams.
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The debate comes amid rapid growth in digital financial content consumption. Global surveys by organisations such as the OECD have shown that younger investors increasingly rely on social media for investment guidance, a trend mirrored locally as retail participation in equities and crypto-assets expands.
Beyond finfluencers, the panel also flagged concerns relating to artificial intelligence in financial services, the cost and accessibility of banking products for consumers and small businesses, and the effectiveness of consumer education initiatives. It has provided input on draft regulatory standards, consumer vulnerability frameworks and internal risk assessments.
Panel members include representatives from academia, consumer advocacy, journalism and financial education bodies. Their terms run until March 2027, as the FSCA continues refining its oversight approach in an increasingly digital financial environment.