France Launches Responsible Influence Certificate In Financial Advertising For Infuencers Shilling Crypto
KEY POINTS
- Those who would like to receive a Responsible Influence Certificate in Financial Advertising are required to pass an exam
- The new program came a couple of years following ARPP's introduction of the Responsible Influence Certificate
- While the new program is not a legal requirement for influencers, the module offers crucial information centered on the laws of the country
Amid the increasing number of lawsuits filed against finance and crypto influencers, France has introduced the Responsible Influence Certificate in Financial Advertising for content creators promoting cryptocurrency and other investment opportunities.
Created by the Autorité des Marchés Financiers (AMF) and the Autorité de Régulation Professionnelle de la Publicité (ARPP), the program features a training module for the finance and cryptocurrency industry, which aims to professionalize commercial influence, a practice now regulated by law in the country.
"As part of its statutory mission to promote fair, truthful, healthy and responsible advertising for the benefit of consumers-citizens and professionals, the ARPP has set up the Responsible Influence Certificate, which contributes to its prevention actions and to the education needed by content creators in the context of their commercial influence activity. The Certificate is useful for everyone. By combining their respective areas of expertise, the work with the AMF to create a specific module for financial advertising, enabling influencers to understand the applicable provisions of positive law and the Recommendations of the ARPP Code, is part of a common and shared objective of protecting the public-retail investors" ARPP general manager Stéphane Martin said.
Those who would like to receive a Responsible Influence Certificate in Financial Advertising are required to pass an exam by getting a least 75% correct answers out of the 25 multiple-choice questions.
However, only those who have the general certificate based on the new provisions introduced by the law governing commercial influence activities in June 2023 are eligible to participate in the new program.
The program came a couple of years following ARPP's introduction of the Responsible Influence Certificate, which took place after it found out that 25% of online materials did not disclose paid advertising.
"Protecting retail investors is our top priority. If a publication by an influencer is paid for, it is crucial that the public is clearly informed. Finance is a highly regulated sector, and investment communications must comply with the rules and be clear, accurate, non-misleading and balanced. It appears that some influencers are unaware of this. This responsible influence certificate in financial advertising will help to professionalize this field and protect investors from financial products that are too complex or too risky. We encourage professionals who turn to influencers to ensure that they have obtained the certificate," AMF chair Marie-Anne Barbat-Layani said.
The ARPP monitors certified content creators and has the authority to withdraw a certificate if it finds evidence of non-compliance with the rules, laws and ethical guidelines the module educates influencers about.
While the new program is not a legal requirement for influencers, the module offers crucial information centered on the laws of the country. Failure to comply with these laws could lead to legal repercussions.
As one of the impactful results of the Responsible Influence Certificate, some brands have made it a point to ensure that influencers possess the certificate before collaborating with them.
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