Professionalizing the Influencer Industry and Protecting Investors
In a recent development, French regulators AMF (Autorité des Marchés Financiers) and ARPP (Autorité de Régulation Professionnelle de la Publicité) have jointly introduced a groundbreaking certification program tailored for crypto and financial influencers. This initiative, aimed at bolstering professionalism within the industry and ensuring investor protection, promises to reshape the landscape of influencer marketing. Let’s delve into the intricacies of this innovative “Responsible Influence Certificate” and its implications for content creators.
In today’s digital age, younger generations increasingly turn to influencers, affectionately known as “finfluencers,” for valuable financial insights and advice. Social media platforms, notably Instagram and TikTok, have emerged as popular hubs where these influencers dispense investment and trading tips. Recognizing the immense impact of these influencers, French regulators have taken a proactive step to regulate and standardize their activities.
A Closer Look at the Certification Process
To obtain the coveted “Responsible Influence Certificate,” influencers must demonstrate their expertise by scoring 75% or higher on a rigorous 25-question examination. It’s worth noting that this specialized certification module becomes accessible only after completing the broader “general” certificate. Contrary to some initial reports, securing this certificate is not mandatory for aspiring French financial influencers.
The curriculum covered in the certification program addresses the legal complexities associated with promoting investment opportunities. It places special emphasis on restricted advertising areas, particularly in the context of high-risk financial instruments such as binary options and specific CFDs on Forex.
Interestingly, certain brands in France are showing a preference for collaborating exclusively with certified influencers. This highlights the growing recognition of the value and credibility that the “Responsible Influence Certificate” bestows upon content creators. Additionally, the issuing bodies retain the authority to revoke the certificate based on specific terms and conditions, ensuring that influencers maintain high ethical standards.
The concept of the “Responsible Influence Certificate” was first unveiled by regulators in July 2022. Initially focused on conventional financial products, the program has evolved to encompass cryptocurrencies, digital assets, equities, bonds, ETFs, funds, and derivatives. However, it deliberately excludes subjects related to banking and insurance, maintaining a keen focus on the financial sector’s intricacies.
The influencer market, primarily comprised of young individuals with limited legal experience, has faced its fair share of challenges. A 2021 ARPP study examining 30,000 social media posts revealed that 25% of influencers failed to adequately disclose their affiliations with brands. This discovery served as the impetus for the inception of the influencer certification program in September 2021, which has undergone continuous refinement.
The French government’s primary objective in introducing this certification is to equip financial influencers with the necessary knowledge and ethical standards to responsibly guide their followers and protect potential investors. This initiative comes against the backdrop of legal challenges faced by crypto influencers, exemplified by Edwin Garrison’s $1 billion class-action lawsuit against “FTX influencers” earlier this year. The lawsuit, filed in Florida on March 15, accuses eight YouTubers and a talent management entity of failing to disclose sponsorship ties and conduct proper due diligence.
In conclusion, the “Responsible Influence Certificate” marks a significant milestone in the evolving landscape of influencer marketing in France. It not only empowers influencers with knowledge and credibility but also safeguards the interests of their followers and investors. As the influencer industry continues to evolve, this certification promises to play a pivotal role in shaping its future.
