Stock Discussion Sites - ASIC Regulations

[Ann]

We aren't the influencers, we are the cannon fodder!

 

[divs4ever]

We aren't the influencers, we are the cannon fodder! View attachment 139947

yes but the 'cannon fodder' can still get hurt by the sheriff's shotgun

and if we take the Wallstreetbets saga , a couple of correct guesses ( picks ) could make you influential

the part that made me uneasy was the broad definition of 'gain' does clicks' ( ad revenue ) or offering a subscription service after a hot streak count ( similar to say the Moltey Fool )

another example in the US are those that mimic Nancy Pelosi's share moves ( that would count IF she bought and others followed but Nancy sold down in the rally that followed , as the followers boosted that rally )

 

[Ann]

and if we take the Wallstreetbets saga , a couple of correct guesses ( picks ) could make you influential

I think there is a big difference between influences like big fluffy pussy or whatever the guy's name was ( I will not post his other name) and people like us who are commenting on stocks. Most of us generally end up saying "I could be wrong, DYOR, or some such disclosure. Clearly, that is the ethical thing to do even if you know in your gut that the stock on which you are commenting is going to fly.

Some might say people like @peter2 could be seen as an influencer but I see Peter's contributions more like a 'how to' than 'this is what to buy'. Sharing how to create wealth for yourself should never be seen as an influencer but simply as a generous soul who wants to see others grow in knowledge and wealth. If that gets him into trouble then I will be the first to contribute to his legal expenses.

Now as this is totally off topic I will not be posting further on this subject.

 

[Belli]

Pretty sure there would have to be some sort of evidence that you "profited" from that "advise".

This site is pretty grounded so we are safe.

Sorry but that is not how ASIC is approaching it. Making a dollar out of it is secondary.

Discussing financial products and services online | ASIC

asic.gov.au

Financial product advice​

The law: Financial product advice is a recommendation or statement of opinion which is intended to influence, or which could reasonably be regarded as being intended to influence, a person making a decision in relation to financial products.

You can share factual information that describes the features or terms and conditions of a financial product (or a class of financial products) without giving financial product advice. However, if you present factual information in a way that conveys a recommendation that someone should (or should not) invest in that product or class of products, you could breach the law by providing unlicensed financial product advice.

If you’re an influencer who receives benefits or payment for your comments in relation to financial products, you're more likely to be providing financial product advice because it indicates an intention to influence the audience.

As an aside apparently ASIC called in a number of bloogers, etc late last month for a private briefing and basically said shut down of get an AFSL.

 

[Ann]

As an aside apparently ASIC called in a number of bloogers, etc late last month for a private briefing and basically said shut down of get an AFSL.

Well there you go @Joe Blow was not called in so meh, we are not classed as influences, and am I not surprised?!

 

[peter2]

@Belli is quite correct. The ASIC definitions of advice are extremely broad and can be applied to most forum posts that mention a specific stock or even a comment on shares/ETFs in general. Even an educational journal could be considered by ASIC as an influence to buy or sell a financial product.

No doubt ASIC is targeting the most visible evidence of unlicensed financial advice on social media. Much of which is misleading, incorrect and should to be stopped.

It's very likely that ASIC will stop there. We'll see what happens.

 

[Belli]

No doubt ASIC is targeting the most visible evidence of unlicensed financial advice on social media. Much of which is misleading, incorrect and should to be stopped.

It's very likely that ASIC will stop there. We'll see what happens.

That's what my thinking (hope) is. And yet there will still be that very broad approach available to ASIC. In a technical sense you cannot even say if someone should or should not invest in shares as that can be viewed as provision of financial advice.

It's a heavy handed attitude as a result of a few ratbags. Mind you chat about property or crypto to your heart's content as they are not financial products.

 

[frugal.rock]

ASIC
Their biggest insider trading case was a few years ago, $7 million, by a cheeky greedy kid.

Surely this is only the tip of a filthy big iceberg by many players in many circles.

I'm not sure ASIC have the teeth to deal with the iceberg.
Too many fat cat protection rackets potentially going on?

Just like influencers, Finfluencers are out for themselves.
ASIC chasing them is a bit like a kid with a magnifying glass chasing ants.
Also reminds me of "Wack-a-Mole"

The Accomplice

Follow the latest news headlines from Australia's most trusted source. Read in-depth expert analysis and watch live coverage on ABC News.

www.abc.net.au

 

[Smurf1976]

The world's gone crazy in my opinion.

I mean seriously, we're at the point of protecting people from "influencers" giving advice online?

Surely it should simply be sufficient to state that "I'm not a licensed financial advisor" or words to that effect and leave it for readers to form their own opinion.

Heck I knew as a fairly young kid, primary school age, that anyone selling anything was biased and would always say it was a good deal regardless of the truth. Just as I knew that actors in movies don't really punch or shoot anyone and so on. Doesn't everyone know this stuff?

Meanwhile I note that, among other things:

Newspapers continue to publish statements about financial issues "not being a concern" or "being wrong" and so on which most certainly could be interpreted as giving advice. They said inflation wasn't going to happen less than two years ago - anyone who acted on that has lost money almost certainly.

Politicians make incorrect or highly misleading statements about financial matters. If you're the actual Minister for something, and you comment that the price isn't going up, then is that not financial advice? Even worse would be if you said it then the price actually went up 70% over the next two weeks.....

All this fuss from ASIC seems akin to worrying about someone who's overstaying a 2 hour parking limit meanwhile turning a blind eye to the armed robbery going on just down the road.

 

[divs4ever]

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i am fairly sure the BIG influencers don't use their talents at ASF , but that is just a guess

 

[Belli]

No names, no pack drill, however..............

The Caps Lock Crusader – The Caps Lock Crusader can come in many forms. However, the best Caps Lock Crusaders know that the unadulterated caps lockery is essential to hammer home the ever-important point you are trying to make. Consistency nor discretion are tools of their trade.

“oi Jetstar i BOOKED my ticket 2 WEEKS ago and yous still haven’t sent out an itinerary, NOT HAPPY!!!!”

Note how you wouldn’t have understood the sentiment unless it was punctuated like a type-writer with tourettes?

 

[Garpal Gumnut]

This thread is one of the most amusing on ASF.

EYG.

gg

 

[Iron Triangle]

A few youtubers i follow that post videos on stocks regulary offer side deals as part of the blog i.e pay me $1 a day and get access to my stock picks, play $5 a day to access the private chat room , whats app me for special content , blah blah . Clearly these blokes are not qualified financial advisers and are using the social media platforms to play wanna be stock broking and think they know more about finance than Goldman sachs. ASIC will target these types i'd say. Some are very convincing more so than others.

 

[Garpal Gumnut]

Afore youse all get carried away.

The best indicator of future behaviour is past behaviour.

ASIC would be one of the biggest mobs of losers and no hopers on the government payroll.

I wouldn't trust any of them to go down to my local convenience store to buy me a packet of smokes and bring back the correct change.

EYG ERABYT

gg

 

[wayneL]

If we take this all to its most ludicrous extreme we can say goodbye to the financial pages of every newspaper and probably goodbye to The Financial Review.

Can you go see that happening, I can't.

Like everything, I think it is been left purposely nebulous so they can victimise some financial "educator" flogging financial courses for $5,000 and want to take out, but I don't think we plebeians who are here pontificating about PE of BHP need worry.

FWIW

 

[Garpal Gumnut]

If we take this all to its most ludicrous extreme we can say goodbye to the financial pages of every newspaper and probably goodbye to The Financial Review.

Can you go see that happening, I can't.

Like everything, I think it is been left purposely nebulous so they can victimise some financial "educator" flogging financial courses for $5,000 and want to take out, but I don't think we plebeians who are here pontificating about PE of BHP need worry.

FWIW

FWIW !!

Please explain.

EYG and ERABYT

gg

 

[basilio]

My guess is that ASIC is concerned at the widespread promotion of Crypto Currency and associated scams amongst younger people by the latest gaggle of Media Influencers. This is where the big money is currently flowing.

On balance most people on ASF won't be following Instagram and You Tube favourites who have gained huge followings. In that context clever financial promoters will get into the ear and pocket of these opinion makers/leaders with a view to capturing some percentage of their followers.

ASIC's brief is to ensure that financial advice is honest, evidence based and not simply a creative litany intended to enrich a promoter. So yes I think they should be having a close look at many of these people.

And I don't believe ASF is in any sort of trouble. It is too well regulated (perhaps other forums though ? )

 

[Garpal Gumnut]

My guess is that ASIC is concerned at the widespread promotion of Crypto Currency and associated scams amongst younger people by the latest gaggle of Media Influencers. This is where the big money is currently flowing.

On balance most people on ASF won't be following Instagram and You Tube favourites who have gained huge followings. In that context clever financial promoters will get into the ear and pocket of these opinion makers/leaders with a view to capturing some percentage of their followers.

ASIC's brief is to ensure that financial advice is honest, evidence based and not simply a creative litany intended to enrich a promoter. So yes I think they should be having a close look at many of these people.

And I don't believe ASF is in any sort of trouble. It is too well regulated (perhaps other forums though ? )

ASIC, quite aside from it's lack of assets does not fare well judicially when it catches up with miscreants.

The Law in relation to financial scams and mis-steps is an ass.

It takes too long to prosecute people and there are many loop holes that a clever legal team can use to slip some very slippery characters through.

Unless it is equipped with the powers of a Corruption Inquiry, a Star Chamber or the more grisly aspects of Sharia Law, nothing will change.

A few years in the Cooma Hilton is not sufficient.

gg