-- France is taking a proactive approach to regulating influencers promoting investment products in their blogs. The country makes a step toward outright licensing them by introducing a non-obligatory Responsible Influence Certificate for those promoting crypto.
On September 7th 2023, two French regulatory bodies, the Autorité des Marchés Financiers (AMF) and the Autorité de Régulation Professionenelle de la Publicité (ARPP), announced that they have jointly set up a training module for influencers in the financial sector. The collaboration between the two giants enables French influencers to prove their knowledge in the financial industry.
Overview
In 2021, the Responsible Influence Certificate was created when the ARPP first introduced it. Since its launch, over 1,000 influencers in France have received the certificate after completing the general training course on best practices in influencer marketing. In addition to the general certificate, French influencers must now take the new module.
The certificate program is now expanding to include a dedicated course for financial influencers that addresses various topics, such as advertising equities, bonds, ETFs, funds, derivatives and other investment products, including unconventional investments like wine and cryptocurrencies. To earn the Responsible Influence Certificate in Financial Advertising, candidates must score at least 75% to correct answers to 25 multiple-choice exams. Although the certification is not legally obligatory, the ARPP reserves the right to withdraw it from non-complying influencers.
Moreover, to qualify for this certificate, influencers must first secure a general certification that the ARPP provides for influencers across various sectors. AMF Chair Marie-Anne Barbat-Layani mentioned that the financial industry is highly regulated, and investment communications must be law-compliant, balanced and clear. She highlighted that their top priority is protecting retail investors. The public must be clearly informed if a publication by an influencer is paid for.
Background
This development comes on the heels of legislative changes in France concerning the use of influencers for promoting crypto. In May 2023, the French Senate approved an amendment that allows registered crypto firms to employ social media influencers for endorsement and promotional purposes. The amendment mentioned that the new wording would enable firms to register with France’s Financial Markets Authority (AMF) to hire influencers for their products, “the current wording is more restrictive than the existing provisions in the Consumer code”.
The possibility for registered digital asset service providers (PSAN) is excluded from the AMF to use commercial influence. In the original iteration, the bill called for an outright ban of influencer advertising for the crypto industry in the country. Companies that could engage in influencer advertising were limited to only those licensed by the AMF. At the same time, in the United Kingdom (UK), regulatory bodies have warned influencers that they could face up to two years in prison, unlimited fines, or both. The European Consumer Organisation has advocated a complete ban on advertising crypto for influencers.
The EU watchdog mentioned that crypto marketers on social media platforms use misleading promotions, exposing consumers to serious harm. In May 2022, French regulators took a big step by granting a Digital Asset Service Provider (DASP) to Binance. Experts at Bitcoin Decode mentioned that the registration allowed Binance to operate its crypto exchange in the country, making it the first major European country to give regulatory approval to a crypto exchange.
The move made by France was aimed at securing the country’s crypto exchange status and attracting more crypto companies to operate in France. The AMF listed Binance as a registered digital asset service provider and enabled it to offer trading and custody services for Bitcoin (BTC), Ethereum (ETH) and other cryptocurrencies. Binance expressed its hopes to establish European headquarters in Paris because crypto regulation in France was progressive, which made the country very attractive to invest in.
Different Stances on Regulating Influencers
In some quarters, influencers are the champion of the people. According to the principle of ZeroCap, Trent Barnes emphasised that over-regulating influencers would affect financially disenfranchised people. A board member at Choise.com, Anastasia Kor, believes that the role of celebrity endorsers should be noticed.
Kor said, “As an industry, we need to find ways to ethically leverage celebrity popularity to promote our products”. In Singapore, influencers are prohibited from promoting any crypto asset on social media. Instead, crypto companies can only advertise their products on their platforms. The EU entails that crypto influencers must fully reveal the financial risks associated with the products that they are promoting. France may very well be the only nation registering its influencers.
Introducing certificates for influencers in France symbolises a shift towards greater responsibility and ethical considerations in financial promotions, including those related to cryptocurrencies. The program is voluntary, and its existence represents an alternative approach to outright bans or punitive measures. The program aims to educate and standardise the activities of financial influencers and ensure that the influencers can advise the public about financial matters.
Contact Info:
Name: Hannah Parker
Email: Send Email
Organization: commission des affaires economiques
Website: https://www.senat.fr/
Release ID: 89108909
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