The financial regulator has delivered a stern warning to both young and inexperienced investors not to be swayed by social media and online forums that promote investments when deciding where to park their money.
Information garnered online via social media or forums may be inaccurate, while advice from financial celebrities, or “finfluencers,” can come with a good deal of risk, the Australian Securities and Investments Commission (ASIC) says.
Somer Taylor, ASIC’s senior manager of retail complex products and investor protection, told an online investment conference aimed at young investors that they must use their own judgement and think about associated risks before making any investment decisions.
ASIC says it is facing significant challenges when trying to police online platforms.
“There’s a fragmented nature when we’re…