In the digital age, social media has transformed how we consume information — including financial advice. Enter the rise of “finfluencers” — financial influencers who use platforms like Instagram, TikTok, YouTube, and Facebook to share tips on budgeting, investing, saving, and wealth-building. But while these content creators can offer valuable insights and inspire positive money habits, their role also raises questions about legality and regulation here in New Zealand.
There is definitely a role for finfluencers, particularly in helping people get started on their financial planning journey, but there are risks with the limited disclosure of how these people earn their money and potential scams.
Who Are Finfluencers?
Finfluencers are individuals who leverage their social media presence to discuss personal finance topics. They might share:
- Budgeting hacks for everyday living
- Investment strategies in shares or property
- Superannuation (KiwiSaver) tips
- Debt management advice
- Financial goal-setting ideas
Their appeal lies in making finance relatable and accessible—often using simple language, humour, or storytelling. Many finfluencers come from non-traditional financial backgrounds but have built trust with followers through authenticity rather than formal qualifications.
The Growing Impact of Finfluencers in NZ
As Kiwis increasingly turn online for financial guidance, finfluencers have become a popular resource — especially among younger demographics who may find traditional advice intimidating or inaccessible. This trend is reshaping how people think about money and manage their finances.
However, the very informality that makes finfluencers appealing also highlights important considerations around the quality and reliability of advice shared. Unlike licensed financial advisers or banks bound by strict compliance rules, finfluencers operate in a less regulated space.
Legal and Regulatory Landscape for Finfluencers
In New Zealand, providing financial advice is regulated and the law requires anyone giving personalised financial advice to be registered as a Financial Advice Provider (FAP) and meet standards to ensure consumers receive safe and suitable guidance.
This means:
- Personalised Advice vs General Information: If a finfluencer offers tailored recommendations specific to an individual’s circumstances (e.g., “You should buy these shares”), they may be providing regulated financial advice.
- Disclosure Requirements: Registered advisers must disclose fees, conflicts of interest, and provide statements of advice.
- Compliance with Advertising Standards: Any promotion of financial products must be truthful and not misleading.
Many finfluencers avoid full registration by sharing general information or opinions rather than personalised advice. However, this distinction is not always clear-cut. The FMA has issued warnings reminding influencers that if their content crosses into personalised advice territory without proper licensing, they could face enforcement action.
Risks for Consumers
While many finfluencers genuinely want to help their audience make better choices, potential pitfalls include:
- Misinformation: Unqualified advice may lead to poor investment decisions or unexpected risks.
- Lack of Accountability: Unlike licensed advisers who are accountable under law and industry bodies, finfluencers may not have recourse if their recommendations cause harm.
- Conflicts of Interest: Some finfluencers promote products or services for payment without transparent disclosure.
Consumers should approach finfluence content critically — considering whether the source is qualified and whether the advice fits their personal situation. For significant financial decisions, consulting a registered financial adviser remains best practice.
What Should Finfluencers Do?
For those creating finance content in New Zealand wanting to stay on the right side of regulation:
1. Understand When Advice Is Regulated: Avoid giving personalised recommendations unless they are properly licensed.
2. Focus on Education: Share general information about managing money rather than telling individuals what actions to take.
3. Be Transparent: Disclose any partnerships or sponsorships clearly.
4. Encourage Professional Guidance: Remind followers that complex decisions warrant speaking with qualified advisers.
By adhering to these principles, finfluencers can build trust while respecting legal boundaries.
Summary
The regulatory environment in New Zealand means that advice is not that accessible - most financial planners (giving financial planning advice as compared to selling a product) have minimum requirements relating to the income that they will be able to receive from a client. Therefore, there is clearly a gap in the market for finfluencers, as long as they operate within the regulatory environment. As well as the New Zealand Financial Markets Authority (FMA), regulators around the world are cracking down on finfluencers and ensuring that they are acting within the regulation.
If a friend or family member is taking advice from a finfluencer, it could all be good, but let them know to take a step back and look at what is actually happening and assess whether the income that is being generated is being disclosed, and consider any conflicts of interest in the advice being given.
