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- 1 France came up with new criteria and regulations for social media influencers, mainly working with crypto or financial products.
- 2 To promote any of the financial or digital assets, an individual needs to get a license and must obtain certification in the Responsible Influence.
According to a press statement released on September 7, 2023, it will become mandatory for social media influencers to obtain a Responsible Influence Certificate when promoting a crypto or any financial product. The certification program was launched by two French regulators including the Autorite des Marches Financiers (AMF) and the Autorite de Regulation Professionnelle de la Publicité (ARPP).
Non-Obligatory Responsible Influence Certificate Insights
Before advertising any financial or crypto product, French social media influencers must clear a certification in the Financial Advertising program. The key purpose of the program is to test influencers on the new law regulating social media influencers.
The promotion of crypto or financial products in blogs will become illegal without the certificate.
Highlighting the idea, the “Responsible Influence Certificate” idea was introduced in 2021 by ARPP and was achieved by 1,000 French influencers at that time.
French regulators are now resolute in making it mandatory for financial influencers, funds, exchange-traded funds, advertising equities, and other investment products. The decision also involves crypto assets as well as wine.
Eliminating the fraudulent activities that are mainly linked to crypto is one of the main rationales behind the program approval by France.
The over dependency of the young generation on social media influencers for financial advice encountered several challenges. A study by ARPP in April 2021 examined 30,000 social media posts and revealed that around 25% of the influencers did not declare their brand associations, affecting the investing practices of youngsters.
To mitigate challenges for young investors as well as equip financial influencers to better direct the followers, the French government introduced a new financial advertising program.
The next thing to focus on is, how to become Responsible Influence Certified. Here are the criteria for the same.
How to Become Certified?
Becoming a “Responsible Influence Certified” influencer is easy with the financial advertising program. One needs to clear two tests to become a legal financial advisor or influencer. One should first have to get the ‘General certificate’ to match the criteria of a financial advertising program.
Another step is to pass the Responsible Influence Certificate in Financial Advertising. Scoring 75% on the test is mandatory for the participant to clear the test. In addition, individuals would be provided with 25 multiple-choice questions that test the knowledge of the examinee regarding financial products.
ARPP has the power to withdraw the certificate from the Finfluencers based on their activities.
Further, the certification is valid only for one year and one needs to retake the test for renewal. Also, the course involves different topics such as financial services, investment products, digital asset services, crypto assets, etc.
Conclusion
The French government mandates a Responsible Influence Certificate for financial and crypto influencers. The main objective is to mitigate fraudulent activities as well as show the right direction to the youngsters who want to make an investment. Passing a test will help the Finfluencers in actively advising the investors with licenses.
Steve Anderson is an Australian crypto enthusiast. He is a specialist in management and trading for over 5 years. Steve has worked as a crypto trader, he loves learning about decentralisation, understanding the true potential of the blockchain.
