ASCI New Guidelines for Finfluencers: Registration and Qualifications Required from SEBI, IRDAI
Introduction:
The Advertising Standards Council of India (ASCI) has recently tightened its guidelines for financial social media influencers, also known as “finfluencers,” as part of its effort to protect consumer interests. The revised guidelines stipulate that finfluencers must be registered with the Securities and Exchange Board of India (SEBI) to offer investment-related advice.
Additionally, they should prominently display their registration number, name, and qualifications. For other financial advice, finfluencers must possess appropriate credentials, such as a licence from the Insurance Regulatory and Development Authority of India (IRDAI), being a qualified chartered accountant, or holding a company secretaryship. ASCI also emphasizes the need for adherence to disclosure prerequisites set by financial sector regulators.
According to recent reports, the Advertising Standards Council of India (ASCI) has implemented stricter guidelines for financial social media influencers, known as “finfluencers,” with regards to registration and qualifications. These new guidelines aim to safeguard consumer interests and ensure that finfluencers provide responsible advice in the financial sector.
Under the revised guidelines, finfluencers offering investment-related advice must be registered with the Securities and Exchange Board of India (SEBI). They are required to prominently display their registration number, name, and qualifications in all advertisements.
For other types of financial advice, finfluencers must possess relevant credentials such as a license from the Insurance Regulatory and Development Authority of India (IRDAI), being a qualified chartered accountant, or holding a company secretaryship.
Staying Ahead of the Curve: ASCI Announces New Guidelines for Finfluencers in India
Timely Intervention:
SEBI has raised concerns about finfluencers spreading misleading advice related to investments and stock trading, prompting the drafting of a discussion paper to regulate their activities. Manisha Kapoor, CEO and Secretary General of ASCI, emphasized the significant impact of inaccurate and deceptive advertising content in the banking, financial services, and insurance sectors on consumers’ financial security. To promote responsible advice, ASCI requires social media influencers to disclose their specific registrations and licences for financial investments covered by SEBI or IRDAI in all advertisements.
Enhanced Guidelines for Health and Nutrition Claims:
ASCI has also revised its guidelines for influencers endorsing products that make health and nutrition-related claims. These influencers are required to hold relevant qualifications, such as medical degrees or certifications in nursing, nutrition, dietetics, physiotherapy, or psychology.
The self-regulatory body emphasizes the importance of disclosing qualifications and registration details on all promotional material. This can be done through prominent visual overlays, upfront mentions in videos, upfront statements in text-based posts, or calling out disclosures at the beginning of audio posts.
Consumer Safeguards:
ASCI acknowledges that while consumers may be aware of celebrities’ fields of expertise, they may not have the same understanding of influencers’ qualifications and expertise. To protect consumers from the consequences of advice from non-experts, health and financial influencers must meet these additional requirements. By disclosing qualifications and adhering to registration and disclosure guidelines, influencers can provide accurate advice and inform consumers about associated risks.
By implementing these guidelines, ASCI aims to promote responsible advertising practices in the financial sector and protect consumers from potential risks associated with inaccurate or misleading advice. The guidelines require finfluencers to register with the appropriate regulatory bodies, disclose their qualifications, and adhere to disclosure requirements
Procedure for Finfluencers Registration
The procedures for finfluencers registration may vary depending on the regulatory requirements set by the authorities. While the exact procedure for finfluencers registration is not explicitly mentioned in the available sources, there are discussions and ongoing initiatives focusing on regulating finfluencers in the financial sector.
The Securities and Exchange Board of India (SEBI) has recently released a discussion paper to seek public comments on the proposed regulations for finfluencers. The paper discusses various aspects, including the registration process for finfluencers. However, it is important to note that the proposed regulations do not provide specific details regarding the registration procedure for finfluencers.
To fully understand the registration procedure and any specific requirements for finfluencers, it would be advisable to review the official regulations or guidelines provided by the regulatory authorities like SEBI and the Advertising Standards Council of India (ASCI). These sources are likely to provide more comprehensive information on the registration process for finfluencers operating in the financial domain.
Overall, these guidelines are a step towards increasing transparency, accountability, and consumer trust in the realm of financial advice provided by social media influencers.
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