The Hong Kong Securities and Futures Commission (SFC) is contemplating tighter compliance requirements for licensed institutions employing financial influencers, known as KOLs. The proposed measures would mandate brokers to conduct due diligence on KOLs, assessing their background, reputation, and experience, while continuously monitoring their content to prevent misleading information and potential manipulative behavior. Since April, the SFC has been conducting platform reviews and engaging in informal consultations with the industry regarding these guidelines.
Additionally, there are suggestions to establish a licensing system for financial influencers to address the current regulatory imbalance, where only licensed individuals are subject to compliance burdens. This move aims to ensure a more equitable regulatory framework across the financial advisory landscape.
Hong Kong SFC Considers Stricter Compliance for Financial Influencers
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