Clicks and credibility

FINANCIAL influencers (or “finfluencers”) made the news here recently when two of them posted comments that sparked a flurry of withdrawals from financial platform Chocolate Finance, leading the company to halt instant withdrawals.

The incident was highlighted in Parliament in April when Sengkang GRC Member of Parliament He Ting Ru filed a question on the matter. The Workers’ Party MP asked about safeguards for the public against financial advice from non-licensed individuals, and whether there has been a rise in complaints against finfluencers.

In response, Alvin Tan, Minister of State (Trade and Industry) clarified that finfluencers providing advice “must be regulated under the Financial Advisers Act and must first be appointed as a representative by a licensed financial advisory firm”.