Finfluencer Advice: Is It Real or Risky for Your Money

A new report from the Ontario Securities Commission (OSC) highlights a growing trend: more Canadian investors are turning to social media personalities—often called “finfluencers”—for financial guidance. As these creators publish content about saving, investing, retirement planning and wealth building, regulators and investors alike are weighing the benefits and the risks of relying on informal online advice.

Finfluencers produce a wide range of material, from short-form tips on Instagram and TikTok to in-depth YouTube breakdowns and forum posts on Reddit. They can be unaffiliated individuals, content creators hired by financial firms or brands, or formally registered financial professionals. While some provide valuable, accurate information, others lack credentials or have undisclosed incentives—such as paid endorsements or affiliate commissions—making it difficult for viewers to judge how trustworthy the recommendations are.

Money and misinformation

The OSC’s Social Media and Retail Investing report, produced with research firm The Decision Lab, found clear evidence that following finfluencer content can increase investor harm. Investors who acted on advice from finfluencers were 12.2 times more likely to be scammed and 2.3 times more likely to suffer significant losses. These figures underline how persuasive social media content can be—and how quickly misinformation can translate into real financial damage.

Despite widespread awareness of the risks, finfluencers remain influential. Many people say they distrust the broader category of creators, yet they often place strong trust in the specific influencers they follow. Familiarity, likability and the immediate appeal of bite-sized content frequently outweigh caution.

“That’s a concern,” says Christopher Horkins, a commercial litigator and member of the Securities Litigation Group at Cassels Brock & Blackwell LLP. “Most people know there’s risk, but they still make a judgment call on whom they trust. Sometimes they get it right, and sometimes they don’t.”

To reduce harm, the OSC recommends strategies including clearer disclosures and communication tools designed to inoculate viewers against misleading claims. “Prebunking” or “inoculation” involves warning messages that prepare people to identify false or biased advice before they act on it. “Nudging” techniques—prompts that encourage users to pause, verify sources or reconsider impulsive shares—can also lower the chance of bad decisions.

“There are definitely people out there creating trustworthy content,” Horkins adds. “But it’s hard for the average person to tell who knows what they’re talking about, and who’s just getting paid to promote a product.”

What rules do finfluencers have to follow?

Canada currently lacks legislation created specifically for finfluencers, but regulators are using existing securities laws to address non-compliant behaviour. Enforcement actions have targeted influencers who promote securities without transparent disclosure of payment or conflicts of interest.

One prominent example involved James Floreani, known online as Jayconomics. The Alberta Securities Commission found that he promoted securities across multiple platforms without clearly disclosing that his posts were paid advertisements. According to enforcement records, Floreani accepted more than $100,000 from four Alberta-based issuers over two years to promote their stocks to an audience of more than 50,000 followers. The ASC concluded he breached the Securities Act by engaging in investor relations activities without proper disclosure—one of Canada’s early enforcement actions in this area.

Because digital platforms differ from traditional media, regulators warn that buried disclaimers or hidden links are insufficient. “It’s not like a news release where you can just put the disclosure in bold letters at the top,” Horkins says. “Regulators won’t look kindly at a disclaimer buried at the bottom of a long YouTube caption or hidden in a link somewhere.”

Securities issuers also have a responsibility

Regulatory liability can extend beyond influencers to the companies that hire them. “There’s a duty both for the influencer and the issuer,” Horkins explains. Firms that engage creators to promote securities should be confident those influencers will follow disclosure rules, because companies can face regulatory sanctions, reputational harm and public enforcement actions if the rules are ignored.

While Canadian regulators have applied existing laws successfully, legal frameworks struggle to keep pace with fast-moving digital trends. “Tech moves faster than the legal world. That’s just the reality,” Horkins notes. He advises firms to use clear contracts when working with content creators, incorporating explicit disclosure obligations and indemnities to reduce potential liability.

How investors can protect themselves from bad advice

Finfluencer content is likely to remain part of the investing landscape, so investors should be cautious and deliberate when acting on social media advice. Before making decisions based on a creator’s recommendations, consider whether the advice aligns with your risk tolerance, investment timeline and overall financial plan.

If a finfluencer claims to be a financial planner or investment advisor, verify their credentials. Canada’s regulatory organizations and professional associations maintain searchable directories. For example, FP Canada offers an online directory to confirm Certified Financial Planner (CFP) and Qualified Associate Financial Planner (QAFP) designations and to check disciplinary records. The Canadian Investment Regulatory Organization (CIRO) provides a registry of registered investment advisors and firms.

The OSC report underscores that finfluencer content can shape investor behaviour directly. Its persuasive tone and the often-inconsistent disclosure of conflicts of interest create real risks. Until regulatory oversight becomes more comprehensive, investors must navigate social media carefully—questioning claims, checking credentials and avoiding quick decisions based solely on catchy videos or posts.

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• How to find trustworthy finfluencers—plus, 5 to follow right now
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