- France has created a training program for its influencers to teach them how to responsibly market financial products.
- Successful completion of the program will earn the influencer a Responsible Influence Certificate.
- The certification is optional but can be revoked due to non-compliance.
Two France regulators, the Autorité des Marchés Financiers (AMF) and the Autorité de Régulation Professionnelle de la Publicité (ARPP) have launched a training program for financial influencers that awards them a certificate at the end to encourage responsible financial influence and marketing.
The certificate named the “Responsible Influence Certificate” was first introduced by the ARPP in 2021 and has been issued since then. So far, the authority has issued over 1000 of these certificates to French financial influencers who sought it.
However, due to the collaboration with the AMF, the certificate will now be issued to influencers who undertake a special course that teaches about advertising equities, bonds, funds, derivatives, exchange-traded funds (ETFs), and even crypto. The course will also include other unconventional investment products such as wine which is a significant economic driver and native to the country.
To receive the certification, candidates must first pass the course by responding correctly to 25 multiple-choice questions and attain a minimum score of 75%. Additionally, one must also get the “General Certificate” created by the ARPP for all influencers first, in order to obtain the Responsible Influence Certificate.
Although the certificate is not a required legal document, the ARPP has the authority to take it away from influencers who don’t comply.
Protecting Investors is “Top Priority”
The certification is meant to protect investors by ensuring influencers have the expertise to give investment recommendations without misleading them. “Protecting retail investors is our top priority. If a publication by an influencer is paid for, it is crucial that the public is clearly informed,” said AMF Chair Marie-Anne Barbat-Layani
She also noted that the financial sector is highly regulated, and investment communications must be law-compliant, clear, and balanced.
This development is in line with recent legislation revisions in France regarding the use of influencers in the marketing of cryptocurrencies. Earlier in May, an amendment allowing registered cryptocurrency companies to use social media influencers for advertising was approved by the French Senate.
This is after France’s National Assembly’s Economics Committee voted in favor of a law that bans social media influencers from promoting risky financial services, including cryptocurrencies.
The use of influencers to market financial products has long been a bone of contention in many countries, mainly due to the possibility of fraud and misleading financial recommendations and the fact that most influencers lack the expertise to give sound financial advice.
In Singapore, for example, influencers are not allowed to promote any crypto asset on their social media. Instead, crypto companies can only advertise their products on their platforms. In the United Kingdom, influencers may face up to two years in jail, an unlimited fine or both for promoting crypto on their social media.
On the other hand, the European Union allows crypto influencers provided they fully disclose the financial risks associated with the products they’re advertising. However, France may be the only nation registering its influencers.
By launching the training module, the country could help ensure that the influencers can rightly advise the public on financial matters, protecting both its investors and crypto companies by allowing them the freedom to advertise.
