In Southeast Asia, regulators are tightening their oversight of financial services marketing, placing financial institutions under pressure to monitor agent behavior, mitigate misinformation, and maintain brand trust.

A new paper by Meltwater, an online media, social and consumer intelligence company from Norway, looks at how regulators are cracking down on unethical behavior such as misleading advertising and high-pressure sales tactics, highlighting recent regulatory developments amid the surge of financial influencers (finfluencers).

In Malaysia, Securities Commission (SC) released in March 2025 a revised version of its Guidelines on Advertising for Capital Market Products and Related Services, taking into account evolving global and domestic trends, including the rise of social media.

The revised framework, which aims to ensure responsible advertising activities in relation to capital market products and services, introduces new requirements for finfluencers who are not engaged as marketing agents by an advertiser but yet promote capital market products. It also strengthens advertisers’ responsibilities to ensure compliance by their agents, establishes rules on the use of social media for financial promotions, and prohibits advertising services in Malaysia by persons not authorized by the SC.

The framework will come into effect on November 01, 2025.

Indonesia also introduced a new regulation this year through the Financial Services Authority, aiming to consolidate and modernize rules for securities underwriters and brokers, while also introducing a new category of regional securities companies.

Taking effect on December 11, 2025, the regulation notably formalizes the use of social media influencers as a legitimate promotional channel, but outlines clear models of collaboration. It particular, it requires written agreements and compliance with licensing standards, and puts restrictions on influencer activities.

Among other things, social media influencers may act as advertising platform and/or share information about the capital market, but they cannot invite prospective customers to become customers of PPE and PED, and are not permitted to offer any personal assessments or analysis. Financial institutions must also ensure that their influencer partners meet all applicable qualification and licensing requirements in accordance to the selected collaboration model.

In Singapore, the Monetary Authority of Singapore (MAS) requires financial institutions to ensure that advertisements are fair, balanced, and not misleading. Product advertisements are to be clear and legible to ensure that financial advertisements convey accurate information. These measures aim readability and understanding by the consumer, and facilitate more transparent and ethical advertising.

MAS also prohibits the advertisements of virtual assets through any public channel, including television, social media, and physical billboards, citing the high risks of cryptocurrencies, which are unsuitable for the general public due to their volatility. Crypto services providers are also prohibited from marketing through third parties, including social media influencers.

This trend extends across the broader APAC region. In Hong Kong, for example, the Insurance Authority (IA) introduced in 2024 tighter regulations, strengthening ethical conduct from companies across its insurance sector to ensure fairer treatment and strong protection of insurance customers, particularly in the sale of long-term and medical insurance policies.

The IA’s guidelines set requirements on product design, disclosure of clear and adequate information, financial needs analysis, benefit illustrations, policy replacement, cooling-off periods, and the use of gifts in promotions. It also mandates post-sale controls and appropriate remuneration structures to minimize conflicts of interest.

The rise of finfluencers and accompanying risks

Finfluencers are social media influencers who offer advice and information on various financial topics, including saving, investing, and cryptocurrencies. They use social media platforms like YouTube, TikTok, and Instagram to offer advice in quick, engaging and easy-to-digest content forms, focusing on simplifying complex financial concepts.

Though finfluencers have helped make intricate subjects more accessible and raise awareness about personal finance, their rise has also introduced significant risks. Unlike licensed investment advisors who must register with regulators and meet professional qualifications, finfluencers bypass these requirements.

Furthermore, finfluencers generate income through unrelated incentives such as platform monetization, brand promotions, or affiliate marketing, whereas financial advisors typically earn fees or commissions tied to client services. Hence, their focus is often on growing their online presence rather than protecting client interests.

High-profile cases illustrate these risks. In 2022, reality star Kim Kardashian was fined US$1.26 million by the US Securities and Exchange Commission (SEC) for touting on social media a crypto asset security offered and sold by EthereumMax without disclosing the payment she received for the promotion. Football player Tom Brady and NBA star Shaquille O’Neil had also promoted FTX before the crypto trading platform collapsed.

And yet, reliance on social media for financial advice continues to grow. A 2024 MoneySmart survey of 2,000 adults in Hong Kong and Singapore found that 52% relied on social media as their primary source of financial advice, ahead of family, friends, financial advisors, and books. Platforms such as YouTube, Instagram and Facebook emerged as the most popular for accessing financial insights.

Nearly half (43%) of those surveyed said social media improved their financial knowledge, with 19% using it daily to seek financial tips and advice.

Yet, the risks are real. Almost 1 in 5 (18%) respondents lost money on investments influenced by online advice, and a further 14% fell victim to financial scams after following social media recommendations. Among those who followed social media advice, 9% reported substantial financial losses.

Discover actionable ways to safeguard your brand in the “Strengthening Financial Compliance in SEA’s Social-Driven Landscape” report here.

Featured image: Edited by Fintech News Singapore, based on images by aukid and freepik via Freepik