France has made a trailblazing step by developing a “Responsible Influence Certificate” aimed at regulating and equipping financial influencers in an era characterised by the influence of social media on financial decisions. These internet celebrities, also referred to as “finfluencers,” frequently have a lot of influence when it comes to pushing financial items. The action is viewed as a pro-active response to the difficulties caused by these people’s steadily expanding financial dominance.
The Autorité des Marchés Financiers (AMF) and the Autorité de Régulation Professionnelle de la Publicité (ARPP), two regulatory authorities in France, jointly unveiled this ground-breaking program. A novel strategy for combating the growing influence of financial influencers, particularly those who promote investment goods, such as cryptocurrency, is the Responsible Influence Certificate.
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The Responsible Influence Certificate
The Responsible Influence Certificate is not entirely new; it made its debut in 2021, courtesy of the ARPP. Since then, more than 1,000 French influencers have earned this certification. However, recognizing the dynamic nature of the financial sector and the evolving role of influencers, the Certificate has evolved. Now, it features a specialized course tailored explicitly for financial influencers.
This course encompasses a broad spectrum of financial products, ranging from traditional equities and bonds to modern financial instruments like Exchange-Traded Funds (ETFs) and derivatives. Interestingly, even unconventional investments such as wine and crypto-assets find mention in the curriculum. By encompassing these diverse assets, the Responsible Influence Certificate in Financial Advertising equips influencers with a comprehensive understanding of the financial landscape.
Related: French lawmakers agree to loosen rules in proposed crypto influencer bill
Earning the Responsible Influence Certificate in Financial Advertising is no walk in the park. Aspiring influencers must demonstrate their proficiency by achieving a minimum of 75% correct answers in response to a set of 25 multiple-choice questions. While this certification doesn’t carry the weight of a legally obligatory document, it does empower the ARPP to withdraw it from influencers who fail to comply with the established guidelines.
However, there is an additional layer to this certification process. To qualify for the Responsible Influence Certificate, individuals must first obtain the “general Certificate,” a prerequisite developed by the ARPP for all influencers. This step ensures that influencers possess a foundational understanding of their responsibilities and the broader advertising landscape.
A Global Perspective on Influencer Regulation
France’s move to introduce the Responsible Influence Certificate aligns with a broader global trend toward regulating influencers, particularly in the cryptocurrency and financial sectors. In May 2023, the French Senate passed an amendment allowing registered cryptocurrency companies to engage social media influencers for advertising and promotional purposes.
In contrast, the United Kingdom has adopted a more cautionary stance, warning influencers that their promotions could potentially constitute an offense punishable by imprisonment of up to two years, unlimited fines, or both. Meanwhile, the European Consumer Organisation has lobbied for a complete ban on influencer-led advertising for cryptocurrencies, reflecting the growing concern over the influence these figures wield.
As the world grapples with the evolving landscape of influencer marketing, France’s Responsible Influence Certificate sets an example of proactive and responsible regulation. By equipping financial influencers with the knowledge and understanding needed to navigate the complex world of investments, this initiative aims to strike a balance between the power of influencers and the need for responsible financial decisions.
Related: China Cracks Down on Crypto Influencers, Shuts Down 80 Accounts