In an update to its guidance note on the concept of investment advice, BaFin confirms that finfluencers generally do not provide investment advice and are therefore not subject to licensing requirements in this regard.
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No Free Pass for Finfluencers
However, the revised guidance note does not constitute a free pass for finfluencers. BaFin explicitly states that finfluencers who promote unauthorized or prohibited business activities may be subject to supervisory measures—specifically, if they advertise products from companies operating without the necessary regulatory approvals.
BaFin does not assess whether finfluencers meet other licensing requirements, such as those related to investment brokerage.
At the European level, efforts are currently underway to establish a regulatory framework for the activities of finfluencers.
Finfluencers as Investment Brokers
Investment brokerage involves mediating transactions related to the acquisition and sale of securities. According to BaFin, simply acting as a messenger who forwards an order to buy or sell a financial instrument can already qualify as investment brokerage. However, merely naming a financial service provider or linking to their website would generally not meet this criterion.
In contrast, if a finfluencer actively promotes a specific financial instrument to their followers and highlights its supposed benefits, this may be seen as influencing investors to purchase that instrument. If the finfluencer receives a commission for transactions completed via their referral, BaFin presumes that investment brokerage is being conducted, which would then require a license.
Finfluencers as Providers or Distributors of Investment Recommendations Under MAR
Even if they do not engage in investment advice or brokerage, finfluencers may still be subject to regulatory obligations.
If they are considered responsible for disseminating investment strategy recommendations or investment recommendations under the European Market Abuse Regulation (EU) 596/2014 (“MAR”), they must notify BaFin accordingly. Failure to comply can result in significant fines of up to EUR 50,000. Additionally, finfluencers may be required to organize their activities in a way that minimizes conflicts of interest. If a finfluencer is compensated based on the transactions they influence, this could pose a significant challenge.
Finfluencers Under EU Scrutiny
In April 2024, the European Parliament’s Committee on Economic and Monetary Affairs (ECON) addressed the topic of finfluencers for the first time. In its opinion on the European Commission’s draft directive to enhance retail investor protection, ECON explicitly acknowledged the impact of finfluencers on younger generations—highlighting both the opportunities and risks associated with their influence.
ECON’s proposals include a legal definition of the term “finfluencer” and concrete measures to regulate their activities. Securities firms and insurers would be required to contractually define the scope and nature of a finfluencer’s activities for them. Moreover, they would need to regularly verify—presumably through appropriate audits—that their finfluencers adhere to the principles of fair, clear, and non-misleading communication when addressing followers, ensuring that statements about promoted products provide a balanced view of both benefits and risks.
General Requirements Remain Unaffected
Regardless of potential licensing obligations and existing or planned regulations, finfluencers remain subject to general requirements governing influencer activities and conduct—such as those outlined in the German Interstate Media Treaty (“MStV”).
