ASIC warns 18 ‘finfluencers’ over illegal financial advice dished out to their social media followers

Australia’s corporate watchdog has fired warning shots to a raft of social media ‘finfluencers’ on notice, with some accused of flaunting lavish lifestyles while feeding followers dodgy financial advice.

Australia’s corporate watchdog has put a raft of social media ‘finfluencers’ on notice, with some accused of flouting lavish lifestyles while feeding followers dodgy financial advice.

The Australian Securities and Investments Commission (ASIC) this week issued 18 written warnings to self-styled investment gurus who have built huge followings on Facebook, TikTok and Instagram, apparently without having suitable qualifications or licences.

ASIC warned the accounts – which often provide advice through private messaging apps – could be pursued for providing misleading or deceptive information, even if they didn’t hold a licence.

The warning came as fugitive former Ferrari-driving Gold Coast finfluencer Tyson Scholz, who called himself “ASX Wolf”, spruiked a new business venture, purportedly from his base in Dubai.

Arrest warrants issued in 2023 remain current for the banned director after he failed to appear in court for charges of fraud, making false declarations, and speeding.

Tyson Scholz is permanently banned from providing financial services.

Scholz was declared bankrupt last year after failing to pay $456,296 in court-ordered costs.

ASIC also successfully had him permanently banned from carrying on a financial services business in Australia.

As recently as last month, Scholz posted a photo of himself relaxing with a smoke on a sun lounger at the Burj Al Arab, captioning it “you don’t build something legendary by staying quiet. You build it by being relentless.”

Earlier in May he made an post from the same location begging his Insta-model ex-girlfriend to “come back” because he “messed up”.

Scholz’s LinkedIn profile describes his as founder of VPN company Black Wolf.

ASIC Commissioner Alan Kirkland said finfluencers targeted followers who didn’t fully understand what they were investing in and that they often benefited directly from the investments they were promoting.

Mr Kirkland said some finfluencers’ expertise was in “making slick social media content, not complex financial advice” and warned followers to be cautious.

“Popularity doesn’t equal credibility,” he said.

“Check their credentials and whether they’re licensed or authorised, before checking your money out.”

Gold Coast finance influencer Tyson Scholz was living large in Dubai while already sightseeing in Geneva, France and other locations in the European Alps this year.

ASIC’s warnings were part of a global crackdown on finfluencers in Australia, Canada, Hong Kong Italy, the UAE and UK which saw sites shut down and people charged by nine separate regulators.

“This action is about making sure people are asking the right questions and are aware of the risks they may be taking if they follow the advice of a finfluencer,” Mr Kirkland said.

“It also places finfluencers on notice that ASIC can and will take action – as we have in the past.

“We are seeing a troubling pattern where these unlicensed finfluencers invite consumers to join their closed communities or forums to learn their so-called secrets to success or to copy their trades.

“Finfluencers are on notice that even when advice is provided through private channels, the law still applies.”

Investors and consumers can check the credentials of finfluencers by using ASIC’s professional registers search tool.

Originally published as ASIC warns 18 ‘finfluencers’ over illegal financial advice dished out to their social media followers