SMFSC Warns Against Unauthorised Financial Promotions Online

Council Cautions Against Misleading or Unauthorised Financial Promotions Online

The San Marino Financial Standard Council (SMFSC) has issued a strong warning to financial firms and online influencers to ensure that their social media advertising complies with financial promotion laws, amid growing concerns over misleading and unlicensed investment content spreading across digital platforms.

The regulator said it has observed a sharp increase in unauthorised financial promotions, including posts that exaggerate potential returns, downplay risks, or fail to disclose paid partnerships. SMFSC reminded firms and individuals that any communication encouraging financial investment must be fair, accurate, and lawful.

Growing Risks from “Finfluencer” Marketing

SMFSC’s latest review highlights the rapid rise of finfluencers—social media personalities who share opinions, advice, or endorsements on financial products.
While some influencers aim to educate or raise awareness, many operate outside regulatory oversight, often promoting high-risk products such as cryptoassets, forex, and CFDs to inexperienced audiences.

The council warned that unlawful financial promotions can result in enforcement action, including fines or bans for firms and individuals who fail to comply.

“Finance content may be trending, but financial laws still apply,” an SMFSC spokesperson said.
“If you’re being paid to promote an investment or trading platform, you must make sure it’s authorised—and that your post tells the full truth about the risks.”

Responsibilities for Firms and Content Creators

Under SMFSC’s financial promotion standards, any person or entity promoting investment opportunities must ensure that their content:

• Clearly discloses sponsorships or paid partnerships.
  
• Provides accurate, balanced information about potential risks and returns.
  
• Avoids language or imagery that could mislead consumers into speculative or inappropriate investments.
  
• Obtains regulatory approval or authorization before publishing investment promotions.
  

The council also advised firms to monitor their affiliate marketing and influencer relationships, as they remain legally responsible for any misleading promotions conducted on their behalf.

Strengthening Oversight and Industry Collaboration

To combat non-compliant activity, SMFSC has stepped up digital surveillance of social media platforms, flagging illegal financial promotions and coordinating with international regulators to identify repeat offenders.
The council is also working directly with major online platforms to encourage the removal of misleading investment ads and to improve ad verification systems.

In parallel, SMFSC is developing updated guidance for online financial promotion, including clearer rules on influencer marketing and a code of conduct for firms engaging digital promoters.

Protecting Consumers from Misleading Content

SMFSC reiterated that its goal is not to stifle online communication about finance but to protect consumers from deceptive marketing and financial harm.
The regulator noted that young and inexperienced investors are particularly at risk of being drawn into speculative trading through entertaining but irresponsible content.

“Influence is powerful, and with power comes responsibility,” the council stated.
“We expect everyone—whether a licensed firm or a content creator—to act with honesty, transparency, and accountability.”

Conclusion: Upholding Integrity in the Digital Finance Era

The SMFSC’s warning underscores the growing importance of digital accountability in modern financial communication.
As financial content becomes more viral, the council continues to position itself as a guardian of ethical conduct, ensuring that innovation and integrity evolve together in San Marino’s financial ecosystem.