New Zealand’s Financial Markets Authority (FMA) has cautioned social media influencers and bloggers against giving financial advice to their followers, warning such actions may place them in breach of laws that took effect in March.

The new laws require anyone who gives regulated advice to either hold or operate under a financial advice provider licence as well as comply with a code of conduct that places client interest above all else.

FMA says there are concerns social media influencers and bloggers may be straying into regulated financial advice if they go beyond talking about general financial matters.

“It’s usually fine to talk about financial matters online as long as you keep it general,” FMA CEO Rob Everett said.“When you start getting into recommending particular products, like specific funds, stocks or insurance, or telling individuals what to do, that’s probably regulated financial advice.”

He also says they should be wary of promoting high-risk products like cryptocurrency and derivatives.

He says these assets have a high risk of people losing money and they’re also often used as bait in scams.

Due to the concerns, FMA has released a guide primarily for social media influencers and bloggers about the new advice regime. The guide includes examples of where discussion about financial matters might cross the line into regulated financial advice.

Click here for the guide.