These social media personalities offer saving tips, investment tricks, and crypto predictions across platforms like TikTok, Instagram and YouTube. But now, South Africa’s (SA) Financial Sector Conduct Authority (FSCA) is sounding the alarm.

The FSCA is tightening regulations on unlicensed influencers who offer financial advice without proper authorisation.

According to Gerhard van Deventer from the FSCA, the trend extends well beyond SA and reflects a global concern. While encouraging financial literacy is vital, van Deventer warns that taking advice from unqualified voices in today’s fragile economy can lead to serious financial harm.

Professor Admire Mare, Head of the Department of Communication and Media Studies, believes this marks a turning point. “People are used to an unregulated influencer landscape,” she said. “This move by the FSCA is bound to rattle the industry. It may push some content creators offline or underground.”

Not all influencers are pleased. TikTok creator @Banzai has criticised the FSCA’s approach, calling it a veiled attempt to control digital narratives. He has since launched the Public Defender Foundation to push back. “We must lobby for laws that protect the people, not just the financial institutions,” he said.

Still, others welcome the change. A creator known as Consulting King praised the FSCA’s efforts, calling them overdue. “I’m tired of unqualified finfluencers giving specific advice with no accountability. This is a step towards transparency,” he said.

Tholang Mathopa, Chief Executive Officer of Leriba AI, calls for balance. “Regulators should work with tech developers, industry experts, and behavioural scientists to ensure financial content is ethical, accessible, and informative,” Leriba urged.

--ChannelAfrica--