Investment Banking News

Government won’t regulate TikTok investment advice

Posted by Anton Murray Consulting on . Posted in Investment Banking News

InvestorDaily

The government will not be stepping in to police social media influencers giving investment tips or to stop retail investors from having a crack at cryptocurrencies, the minister for financial services has said. Speaking at the Stockbrokers and Financial Advisers Association Conference this week, minister for financial services Jane Hume noted the rise of TikTok influencers spruiking stock tips and crypto assets. The global reach of individuals on social media and the ability for consumers to invest instantly through online platforms could prove concerning for those in the investment industry, but ultimately the minister believes it all is key to “removing the friction makes the economy far more productive”.

“With lower costs and easier access, retail investors with limited technical knowledge and experience will continue to enter financial markets,” Ms Hume said. “Now, sometimes, they may make bad investment decisions. And they may sell at the first sign of losses, speculative bubbles – and doesn’t matter whether it’s in tulips or in equities – [they] do correct themselves in time. While it’s frustrating for investment professionals to watch, at some point, we have to let people make their own decisions.

The rest of this article can be found at investordaily.com.au.

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