The slogan of a front-page advertisement in a business newspaper showing the face of a finflunecer (financial influencer) that read: “Trust only the real experts”, along with the IT Ministry logo next to the YouTube logo was has become big news and has gained popularity. criticism. Critics question whether the ad was intended to endorse the skills of influencers or a specific social media platform.
The advertisement, however, does not directly relate to the finfluencers but rather the fact that it consisted of an image of a famous financial influencer, Rachna Ranade, along with the IT Ministry logo, YouTube logo and the slogan. However, right now, SEBI is aiming to crack down on finfluencers.
On June 26, Minister of State for Electronics and IT Rajeev Chandrashekhar expressed that the advertisement was not intended to endorse any platform or person. The Minister also says that since these advertisements can often be misinterpreted, what he advises is a cautious use of Government logos in such campaigns by private platforms.
Understanding finfluencers
Finfluencers are people who advise and share personal experiences about stock investing and money management through public social media platforms. The content these finfluencers create talks about investing, budgeting, cryptocurrency advice, property buying advice, tracking financial trends, and more.
The reason for the criticism of the advertisement
Finfluencers have attracted criticism from the investment community for offering unsolicited advice on financial matters on multiple social media platforms without registering as investment advisors. SEBI is taking note of all this and is trying to come up with guidelines for content creators in the financial sector. Not to be missed, Finance Minister Nirmala Sitharaman’s recent advice also warns and suggests that the audience be cautious and follow the advice of such content creators.
Furthermore, what is even more critical is that it cannot be said whether these influencers have the professional or educational experience to provide financial advice to the population. In addition, it is also unknown if there are monetary benefits that they are receiving for promoting these entities.
Some of these influencers have successfully gained thousands of followers. It’s obvious that if they have such a large fan base, millions of them may also be following their financial advice. What seems worrying is the fact that scammers are using this method to manipulate stock prices.
Guidelines from other organizations
The Advertising Standards Council of India (ASCI) has come up with a set of new guidelines for social media influencers regarding running ads on virtual digital assets, cryptocurrencies, non-fungible tokens, and more. These guidelines are aligned with the government and RBI’s stance on cryptocurrencies. According to the guidelines, all advertisements for VDA exchanges, VDA products, or featuring VDA in any way must carry a disclaimer saying: Crypto and NFT products are unregulated and can be very risky. “There may be no regulatory recourse for any losses arising from such transactions.”
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Categories: Optical Illusion
Source: ptivs2.edu.vn