Jakarta. The Financial Services Authority (OJK) has issued new regulations governing financial influencers, requiring licenses or professional certifications for individuals who recommend certain financial products and services, as part of a broader effort to strengthen consumer protection.

The regulation, formally titled the Financial Services Sector Information Communicator Rule, aims to ensure that information about financial products and services is delivered clearly, accurately, honestly, and without misleading consumers.

Under the new framework, individuals who provide recommendations on financial products or services that are subject to regulatory licensing requirements must themselves hold the relevant licenses required under Indonesian law.

For recommendations involving digital financial assets, including certain investment-related products, influencers must possess competency certification and demonstrate adequate knowledge of the financial services sector.

Agus Firmansyah, head of surveillance and policy at OJK’s Financial Services Sector Department, said the regulation establishes clear standards for individuals who provide financial recommendations to the public.

“The regulation is part of our effort to encourage the delivery of financial information that is clear, accurate, honest, accessible, and not potentially misleading, thereby supporting consumer and public protection,” Agus said in a statement on Wednesday.

OJK defines a financial influencer as any individual or entity, other than a licensed financial services provider, that disseminates information about the financial sector with the aim of improving financial literacy and/or influencing public decisions regarding financial products and services.

The regulation comes as financial influencers, content creators, and digital educators play an increasingly prominent role in shaping public interest in investments, stock markets, digital assets, and other financial products through social media and online platforms.

Regulators around the world have faced growing challenges in overseeing financial advice distributed through digital channels, particularly as retail investors increasingly rely on social media personalities for investment information and market commentary.

While the new rules allow financial influencers to collaborate with banks, investment firms, insurers, and other financial institutions for marketing purposes, OJK stressed that financial service providers remain responsible for the accuracy and compliance of information communicated through such partnerships.

According to Agus, the regulation is intended to strike a balance between encouraging financial literacy and ensuring that individuals offering financial recommendations possess the necessary qualifications and accountability.

Add as a preferred source on Google +