French Regulators Introduces a Non-Obligatory Certificate for Finance and Crypto Influencers
The rise of finfluencers, commonly known as financial influencers in France, has obliged the authority to regulate their investment products and services strategically. A finfluencer is an individual or entity providing investment advice through social media.
The service rendered by the finfluencers has sparked heated debates among regulators in France and other parts of the world. On Thursday, September 7, the Autorité des Marchés Financiers (AMF) teamed up with the Autorité de Régulation Professionnelle de la Publicité (ARPP) to provide training to the finlfluencers in the region.
France Introduce New Training to Finfluencers
The expected training seeks to improve the knowledge and skills of the financial influencers in France. The training primarily aims at expanding the knowledge base of the French finlfluencers.
After completing the training, the ARPP will issue a Responsible Influence Certificate to the influencer. The “Responsible Influence Certificate” was first launched in 2021, seeking to safeguard the investors’ interest in the financial sector. A review of the ARPP website demonstrated that the regulatory agencies have issued over 1,000 certificates to French influencers.
According to the ARPP and the AMF, the two regulators plan to introduce special training to the financial influencers in advertising, crypto, securities, bonds, and stocks. The training will require the influencer to complete the final assessment test to obtain the certificate.
Requirements to Obtaining Responsible Influence Certificate
In the report the ARPP and the AMF outline the minimum qualification for the financial influencers. From the set rules, the candidate must pass 75% of the 25 multiple-answered questions.
In the primary stages of obtaining the Responsible Influence Certificate, the influencer must meet the general certificate requirements provided by the ARPP. The authority recently updated the general certificate to incorporate the new provisions for commercial influencers.
On June 9, the Ministry of the Economy, Finance and Industrial and Digital Sovereignty outlined the ethical codes for the commercial influencers. The proposed amendment was approved by the French Senate to enable crypto firms to engage social media influencers in promoting their services and products.
Under the new rules, the ARPP is legally allowed to supervise the activities of the certified influencers. Additionally, if the content creator violates the Consume Code on Communication and other ethical codes, the ARPP can withdraw the certificate from the non-compliant firm.
Review of ARPP Codes
Addressing the media, the general manager at ARPP, Stephane Martin, mentioned that the Responsible Influence Certificate aims to ensure the authority meets the statutory requirement of fair and responsible advertising.
The executive explained the benefits of the certificate to the content creators. He acknowledged that the certification process requires the influencer to undergo training, including the prevention measures to ensure the investors operate compliantly.
Martin stressed the significance of the Responsible Influence Certificate to commercial influencers. He explained that the collaboration with the AMF seeks to establish a particular course in financial advertising. Martin added that the proposed module will equip the influencers with the skills and knowledge to understand the applicable rules and ARPP codes.
Elsewhere, the head of AMF, Marie Ann Barbat-Layani, explained the importance of protecting retail investors. She confessed that the AMF has always prioritize investor protection intheir everyday undertakings.
The executive pointed out that it was essential to inform the public of the advertisements which are paid for. It is important to disclore the nature of the advertisment since financial industry falls under the most regulated business category in the region.
Layani urged the regulators to ensure the communications rules are clear and easily comprehended. She added that the rule should be accessible and accurate to uphold compliance.
Referring to most of the reported non-compliance cases, most influencers claim to be unaware of the existence of the rules. She encouraged the commercial influencers to comply with the existing rules.
The AMF chair argued that regulating financial advertising will reduce the exposure to risky financial assets. The executive requested the influencer to obtain the license and meet the regulatory requirements.
From the AMF and ARPP announcement, the crypto firms in the region have reacted to the new are are exploring ways to fully comply. Notably some companies requires the influencer to submit their Responsible Influence Certificate at the initial hiring process as an effective approach to uphold compliance.
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