{"id":858742,"date":"2026-06-06T16:00:00","date_gmt":"2026-06-06T14:00:00","guid":{"rendered":"https:\/\/businesstech.co.za\/news\/?p=858742"},"modified":"2026-06-05T14:06:55","modified_gmt":"2026-06-05T12:06:55","slug":"financial-watchdog-has-a-new-target-in-south-africa","status":"publish","type":"post","link":"https:\/\/businesstech.co.za\/news\/finance\/858742\/financial-watchdog-has-a-new-target-in-south-africa\/","title":{"rendered":"Financial watchdog has a new target in South Africa"},"content":{"rendered":"\n

The Financial Sector Conduct Authority (FSCA) has shifted its focus to the fast-growing influence of so-called \u201cfinfluencers\u201d in South Africa.<\/p>\n\n\n\n

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.<\/p>\n\n\n\n

While this shift has made financial topics more accessible for young South Africans, it also introduces new risks.<\/p>\n\n\n\n

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.<\/p>\n\n\n\n

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.<\/p>\n\n\n\n

In an interview with HOT1027FM<\/a>, Anri Dippenaar, Head of Compliance at Masthead, said finfluencers are both beneficial and problematic.\u00a0<\/p>\n\n\n\n

\u201cI think it\u2019s a bit of both. They definitely are improving access to financial education, but they are also increasing the risk of misinformation,\u201d she said. <\/p>\n\n\n\n

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.<\/p>\n\n\n\n

She noted that influencers are inadvertently leading into the financial advice segment rather than education.<\/p>\n\n\n\n

She clarified that education involves general information\u2014such as explaining why saving is important\u2014while advice crosses into recommending specific actions.<\/p>\n\n\n\n

\u201cAdvice would fall more into the recommendation side of things where you\u2019re telling someone to buy this investment or take out a specific product,\u201d she said.<\/p>\n\n\n\n

Despite these risks, finfluencers themselves are not directly regulated, which she believes makes the problem a complex issue.<\/p>\n\n\n\n

However, she pointed out that the financial products and services they promote are still subject to regulation.<\/p>\n\n\n\n

\u201cThe platform in itself is not the problem. It\u2019s really the content and the information being shared through those platforms.\u201d<\/p>\n\n\n\n

The FSCA is actively monitoring the space<\/h2>\n\n\n\n
\"\"<\/a><\/figure>\n\n\n\n

Dippenaar stressed that financial institutions and platforms share responsibility in maintaining educational integrity.<\/p>\n\n\n\n

She pointed out that implementing operational controls, such as checks on marketing materials, can help ensure they provide education rather than regulated advice.<\/p>\n\n\n\n

While many firms are implementing such measures, she warned that rapid technological change means oversight is not always keeping pace.<\/p>\n\n\n\n

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.<\/p>\n\n\n\n

In some cases, influencers who overstep have been \u201cswiftly brought into the scope of a conversation with the regulator around what is appropriate.\u201d<\/p>\n\n\n\n

She added that the influencer space in South Africa is growing rapidly due to its accessibility. <\/p>\n\n\n\n

\u201cWe\u2019re certainly seeing that individuals are participating in this environment quite a bit, and the topic featured prominently at a recent FSCA regulatory event,\u201d she said.  <\/p>\n\n\n\n

\u201cAll of these social platforms are part of daily life and need to be considered as a part of the future and regulated accordingly.\u201d<\/p>\n\n\n\n

Transparency is emerging as a central regulatory focus. Dippenaar highlighted concerns around sponsored content, questioning whether it can ever be fully neutral.<\/p>\n\n\n\n

She stressed that clearer, upfront disclosure is essential. \u201cIf it is an appropriately set up relationship between a financial institution and an influencer, you will find things like disclosures,\u201d she said.<\/p>\n\n\n\n

Dippenaar added that transparency about these relationships is key to helping consumers make informed decisions.<\/p>\n\n\n\n

Dippenaar believes consumers must also take responsibility. \u201cThe first step would be not just to trust social media,\u201d she said.<\/p>\n\n\n\n

Instead, they should look for transparency, disclosures, qualifications, and any incentives that come with the information that they\u2019re sharing.<\/p>\n","protected":false},"excerpt":{"rendered":"

The Financial Sector Conduct Authority (FSCA) has shifted its focus to the fast-growing influence of so-called \u201cfinfluencers\u201d in South Africa.<\/p>\n","protected":false},"author":92,"featured_media":858749,"comment_status":"open","ping_status":"closed","sticky":true,"template":"","format":"standard","meta":{"footnotes":""},"categories":[11121],"tags":[25304,853,19625],"class_list":["post-858742","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-finance","tag-masthead","tag-south-africa","tag-the-financial-sector-conduct-authority-fsca"],"_links":{"self":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/858742","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/users\/92"}],"replies":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/comments?post=858742"}],"version-history":[{"count":2,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/858742\/revisions"}],"predecessor-version":[{"id":858753,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/858742\/revisions\/858753"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/media\/858749"}],"wp:attachment":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/media?parent=858742"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/categories?post=858742"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/tags?post=858742"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}