Chat, is this real? The risks of following finfluencer advice

Financial influencers, or finfluencers, create digital content about personal finance, investing, retirement planning, and more. They may be unregistered individuals working independently, unregistered individuals who have been hired by financial companies or other brands, and registered finance professionals. 

While some finfluencers offer credible insights, others lack credentials or have hidden incentives (such as gaining followers or earning commissions), making it hard for audiences to assess the reliability of their advice. Finfluencer content—shared on wide-reaching platforms like YouTube, Instagram and Reddit—is often fast, free, and easy to follow. It also comes with significant risks.

Money and misinformation

The OSC’s Social Media and Retail Investing report—produced in collaboration with research firm The Decision Lab—found that investors who made decisions based on finfluencer content were 12.2 times more likely to have been scammed and 2.3 times more likely to have experienced significant losses.

Despite these risks, finfluencers remain highly influential. Many investors express general distrust toward the category, but they also report high levels of trust in the specific influencers they follow. Familiarity and personal appeal often override caution.

“That’s a concern,” says Christopher Horkins, a commercial litigator and member of the Securities Litigation Group at Cassels Brock & Blackwell LLP. “Most people know there’s risk, but they still make a judgment call on whom they trust. Sometimes they get it right, and sometimes they don’t.”

To help protect investors, the OSC points to several strategies that can reduce the influence of misleading content. These include requiring clear disclosures and using tools like “prebunking” (pre-emptive debunking), also called “inoculation,” which uses warning messages to prepare people to spot bad advice before they act on it. “Nudging” interventions can also help by encouraging users to pause and think, or to verify the information, before sharing questionable advice.

“There are definitely people out there creating trustworthy content,” Horkins adds. “But it’s hard for the average person to tell who knows what they’re talking about, and who’s just getting paid to promote a product.”

What rules do finfluencers have to follow?

Canada doesn’t have laws specifically designed to regulate finfluencers (yet), but that hasn’t stopped regulators from using existing securities laws to pursue non-compliant behaviour. “We’ve seen regulators go after influencers who promote stocks without clearly disclosing they’re being paid,” says Horkins.

In one case, the Alberta Securities Commission (ASC) found that James Floreani, a social media personality operating under the name Jayconomics, promoted securities across multiple platforms without clearly disclosing that his posts were paid advertisements. Floreani, who had no formal financial training, accepted more than $100,000 from four Alberta-based securities issuers over two years to promote their stocks to more than 50,000 followers.

The ASC ruled Floreani had breached the Securities Act by engaging in investor relations activities without proper disclosure. It marked one of the first enforcement cases of its kind in Canada.

Without laws tailored specifically to digital platforms, the expectations for disclosure remain fuzzy. “It’s not like a news release where you can just put the disclosure in bold letters at the top,” says Horkins. “Regulators won’t look kindly at a disclaimer buried at the bottom of a long YouTube caption or hidden in a link somewhere.”

Securities issuers also have a responsibility

It’s not just finfluencers facing scrutiny. Companies that engage influencers to promote their securities may also be held accountable. “There’s a duty both for the influencer and the issuer,” Horkins explains. “Companies should only engage influencers if they’re certain they will follow the rules, because if they don’t, the consequences can be severe.”

These consequences include regulatory sanctions, reputational damage, and public enforcement decisions that name the companies involved.

While regulators have successfully applied existing laws, Canada’s legal framework still lags behind. “Tech moves faster than the legal world. That’s just the reality,” Horkins says.

He advises companies to draft robust contracts when working with content creators—including clear disclosure requirements and legal indemnities—to protect themselves from liability.

How investors can protect themselves from bad advice

Finfluencer content is here to stay, but so are the risks. Before you make any investing decisions based on social media content, consider whether the advice fits your risk profile and your long-term financial plan. 

If a finfluencer claims to be a financial planner or an investment advisor, you can check their credentials. Canada’s financial services industry has regulatory organizations and associations with lists of advisors and dealers. For example, you can use FP Canada’s online directory to confirm if someone is a Certified Financial Planner (CFP) or a Qualified Associate Financial Planner (QAFP), and check if they’ve ever been disciplined. The Canadian Investment Regulatory Organization (CIRO) has an online directory of registered investment advisors and investment firms. 

The OSC’s report makes it clear that finfluencer content can directly shape how investors behave. Its persuasive nature, paired with inconsistent disclosure of conflicts of interest, raises real concerns. Until we have greater regulatory oversight, investors need to tread carefully in a digital environment where misinformation moves faster than policy.

Read more about investing:

• Canadians are curious about investing—and willing to take bigger risks
• Video: The social media scams happening in Canada right now
• How to find trustworthy finfluencers—plus, 5 to follow right now
• 10 common crypto scams and how to avoid them

About Samantha Kohn

Samantha Kohn is a marketing manager, freelance writer, and part-time professor with a strong focus on personal finance, business, and leadership. Her work helps brands turn complex ideas into clear, engaging stories that inform and inspire.

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