South Africa's FSCA is cracking down on finfluencers—social media personalities offering financial advice without proper licensing.
Image: Nappy.co
If you've ever found yourself deep in a TikTok rabbit hole of finance tips—“How I made R50k in a week!” or “The secret to beating the stock market”—you’re not alone. But South Africa’s financial regulator is now saying: hold up.
As of April 2025, the Financial Sector Conduct Authority (FSCA) is taking a hard look at “finfluencers”—those social media personalities dishing out financial advice without being licensed to do so. Whether it’s on Instagram, YouTube, or TikTok, the FSCA wants to know: are these influencers crossing legal lines?
It’s a bold move that points to a growing reality. Social media might be a goldmine for ideas and trends, but when it comes to your money? It’s not always the safest place to take advice.
This isn’t just a South African issue, either. Back in 2021, more than half of UK investors admitted they looked to social platforms for investment tips. One in five relied on them entirely. Now, South Africa is seeing the same pattern—but unlike licensed financial planners, many finfluencers don’t have the qualifications to back up what they’re saying.
Still, they know how to sell the dream. Quick wealth. Easy strategies. Flashy charts and confident tones. Some are even getting paid to promote financial products without saying so. And in the worst cases? They're just running scams.
With the rise of AI, those scams are getting smarter. Fake profiles, polished brand identities, deepfake videos—scammers are using tech to make it all look real. In the UK, social media investment frauds drained over £60 million in just one year. If South Africa doesn’t act fast, the same could happen here.
Just think back to the GameStop stock frenzy—what started as viral excitement turned into financial heartbreak for many latecomers who bought the hype.
Yes, AI is revolutionising finance. But no app or influencer can replace the insight of a certified financial advisor—someone who knows your goals, your risk appetite, and how to build a plan that makes sense for you.
So what’s the takeaway? Learn on social media, but don’t make big money moves based on a 30-second video.
The FSCA’s crackdown is a needed reminder: when it comes to your future, trust real expertise—not just the algorithm.
