Financial watchdog has a new target in South Africa
The Financial Sector Conduct Authority (FSCA) has shifted its focus to the fast-growing influence of so-called “finfluencers” in South Africa.
Finfluencers have become the new source of financial advice for a generation that gets its financial education from platforms such as TikTok, YouTube, and Instagram.
While this shift has made financial topics more accessible for young South Africans, it also introduces new risks.
These platforms can make investing and financial products feel simple and accessible, particularly for younger consumers who may never speak to a traditional financial advisor.
However, the regulator is now watching closely because the same platforms that can improve financial literacy can also spread misinformation, promote risky products, and push people into bad financial decisions.
In an interview with HOT1027FM, Anri Dippenaar, Head of Compliance at Masthead, said finfluencers are both beneficial and problematic.
“I think it’s a bit of both. They definitely are improving access to financial education, but they are also increasing the risk of misinformation,” she said.
A key concern for regulators is where to draw the line between education and financial advice. Dippenaar explained that the line is really this line between regulated financial advice and education.
She noted that influencers are inadvertently leading into the financial advice segment rather than education.
She clarified that education involves general information—such as explaining why saving is important—while advice crosses into recommending specific actions.
“Advice would fall more into the recommendation side of things where you’re telling someone to buy this investment or take out a specific product,” she said.
Despite these risks, finfluencers themselves are not directly regulated, which she believes makes the problem a complex issue.
However, she pointed out that the financial products and services they promote are still subject to regulation.
“The platform in itself is not the problem. It’s really the content and the information being shared through those platforms.”
The FSCA is actively monitoring the space
Dippenaar stressed that financial institutions and platforms share responsibility in maintaining educational integrity.
She pointed out that implementing operational controls, such as checks on marketing materials, can help ensure they provide education rather than regulated advice.
While many firms are implementing such measures, she warned that rapid technological change means oversight is not always keeping pace.
The FSCA is actively monitoring the space. Dippenaar said regulators are spending time on social media, screening platforms, and keeping an eye on what the industry is doing.
In some cases, influencers who overstep have been “swiftly brought into the scope of a conversation with the regulator around what is appropriate.”
She added that the influencer space in South Africa is growing rapidly due to its accessibility.
“We’re certainly seeing that individuals are participating in this environment quite a bit, and the topic featured prominently at a recent FSCA regulatory event,” she said.
“All of these social platforms are part of daily life and need to be considered as a part of the future and regulated accordingly.”
Transparency is emerging as a central regulatory focus. Dippenaar highlighted concerns around sponsored content, questioning whether it can ever be fully neutral.
She stressed that clearer, upfront disclosure is essential. “If it is an appropriately set up relationship between a financial institution and an influencer, you will find things like disclosures,” she said.
Dippenaar added that transparency about these relationships is key to helping consumers make informed decisions.
Dippenaar believes consumers must also take responsibility. “The first step would be not just to trust social media,” she said.
Instead, they should look for transparency, disclosures, qualifications, and any incentives that come with the information that they’re sharing.
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