FSCA focus on finfluencers proves South Africans are desperate for proper financial advice

The Financial Sector Conduct Authority’s crackdown on the growing legion of unregulated social media financial influencers or finfluencers can be seen as a sign that ordinary people are reaching out for financial advice, but don’t always know how to get it.

“The rapid rise of finfluencers on social media shows that ordinary people out there are actively seeking financial guidance. It confirms that navigating your lifestyle and money successfully through the complexities of the modern world is not surprisingly a bewildering task for many people,” says Liberty’s Suhail Gani, Head of Agency and Wealth Advisory at Liberty.

The FSCA has stated that it has an issue with some finfluencers apparently providing financial advice with reference to financial products, something which requires a license to practise in the financial industry.

Gani says that not all finfluencers though should be regarded as amateurs, and increasingly many professional accredited advisers are turning to social media as a way of engaging with clients who are interested personal advice.

“If you are following financial advice online, it’s always worth exploring that person’s qualifications and experience,” he says.

Financial advice has traditionally been the realm of qualified and licensed professionals who are trained to offer personalized advice to clients from every possible background and situation.

He says professional advice usually starts with an individual financial needs analysis, focusing on current life goals, through to retirement. Advisers are personal financial coaches who are able to listen to clients and who have the experience to compare different lifestyle strategies.

And this professional approach has certainly been successful, there are no shortage of studies that show having a financial adviser will help make you better off in terms of your investments and long-term goals.

“Financial advice is about a personal journey with your adviser. It’s your wealth and future we’re talking about here, so making decisions should be taken seriously. While some finfluencers do have relevant views and qualifications, some also appear to be repackaging common financial knowledge with a dash of dramatic flair,” says Gani.

“While the rise of finfluencers does arguably provide a gateway to fully fledged personal advice. It also suggests that the modern financial world is daunting for individuals looking to secure their futures and for this reason one-to-one human advice has never been more important than it is right now.”