The Italian financial market regulator, Commissione Nazionale per le Società e la Borsa (CONSOB), has issued a comprehensive warning and set new guidelines targeting the activities of ‘finfluencers’ (financial influencers) operating on social media platforms. This proactive regulatory push is directly aimed at protecting domestic investors from misleading advice and unauthorized promotions, especially concerning high-risk assets like cryptocurrencies.
CONSOB’s action is part of a broader European effort to curb digital financial misinformation, coinciding with heightened alerts from the European Securities and Markets Authority (ESMA). ESMA has repeatedly cautioned EU investors about the volatility and inherent risks of crypto assets, emphasizing the lack of comprehensive consumer protection frameworks until the EU’s Markets in Crypto Assets (MiCA) regulation fully takes effect.
The regulatory notice from CONSOB stipulates that individuals promoting financial instruments or investment opportunities must clearly identify themselves, disclose their professional qualifications, and explicitly state whether they receive compensation for their endorsements. The regulator aims to distinguish between genuine, authorized financial advice and promotional content that may constitute unauthorized market manipulation or misleading investment recommendations.
CONSOB’s primary concern revolves around the rapid dissemination of advice, often lacking necessary risk disclosure or regulatory backing, which can encourage inexperienced retail investors to pour funds into speculative or fraudulent schemes. The use of social media platforms, from TikTok to Telegram, has created significant enforcement challenges, as promotional content frequently bypasses traditional advertising standards.
By demanding transparency and adherence to existing authorization requirements, CONSOB is taking a decisive step to bring digital financial promotion under the regulatory umbrella. This move signals a growing European trend toward holding social media financial promoters accountable, establishing a precedent for investor protection in the evolving digital landscape of finance.
Source: Italy’s CONSOB puts ‘finfluencers’ on notice amid ESMA’s crypto risk warnings
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