By Arthur Chan and Jasmine Kwong
Hong Kong, 5 January 2026: In a landmark case, a so-called finfluencer has received the first custodial sentence in Hong Kong for providing investment advice without a licence. The hearing highlights the perils of unlawful financial guidance from online sources and the determination of enforcement agencies – both here and overseas – to tackle the growing problem.
Finfluencers, short for financial influencers, are individuals who leverage social media platforms to promote financial products and share insights and advice with their followers. While some legitimately give financial tips to large audiences, some stray into illegal activity. This can include lack of authorisation – for example, operating without a licence from the Securities and Futures Commission (SFC) – or failure to adequately explain the risks.
In the recent case, arising from a criminal prosecution brought by the SFC, the finfluencer was convicted at Eastern Magistrates’ Court for providing investment advice via a subscription-based chat group on Telegram that he hosted without a licence. He circulated commentaries, recommendations and target prices on various securities and responded to questions raised by subscribers. He was sentenced to six weeks’ imprisonment and ordered to pay the SFC’s investigation costs.
In an earlier case at the same court, another finfluencer was also convicted of providing unlawful investment advice via a subscription-based chat group. While he was a licensed representative of a securities firm, the court heard that he operated the chat group in a personal capacity. He was fined HK$10,000, ordered to pay the SFC’s investigation costs and had his SFC licence suspended for 16 months.
Finfluencers are a global phenomenon, increasingly exposing social media users to risk by illegally promoting financial products and services, often exploiting users’ online habits. A 2024 survey by wealth management firm Charles Schwab studied the investment habits of Gen Z and found that 38% had found financial information from YouTube while 33% had done so from TikTok. Further, research from British bank Barclays last year found over 53% place their money at risk by not always carrying out checks to verify the content’s reliability.
Many finfluencers operate from the same playbook. They display their riches and post about successful investment decisions, often made in hindsight to create a false impression of foresight, and promise to teach subscribers how to replicate their success. While some are legitimate operators, some promote products and services illegally and without authorisation.
Hence, the resolve of the SFC and its overseas counterparts to combat unlawful activity. Last summer, the Hong Kong body joined regulators in the UK, Australia, Canada, Italy and United Arab Emirates in a week-long initiative against unlawful finfluencers. Together, they will use a combination of supervisory and enforcement powers, educational programmes and consumer awareness campaigns to highlight the risks to investors.
Aside from prosecuting unlicensed finfluencers, the SFC assesses securities brokers’ compliance with regulations when they work with such individuals and issues guidance to licensed corporations outlining expected standards. It also pushes social media platforms to remove suspect posts, delete fake profiles and refrain from promoting unauthorised investment products. A concerted effort to educate the public and enhance awareness of online scams is being made through a mass-media campaign.
While acknowledging the legitimacy of finfluencers equipped with an SFC licence, the public are cautioned to be wary of those who are not. Investors should verify finfluencers’ regulatory status, exercise caution when considering their advice, and ensure that they fully understand the risks of investment opportunities touted via social media before making any financial commitments.
Arthur Chan is a Partner with BC&C. He specialises in Criminal Litigation, being a Recommended Criminal Lawyer in the Doyles Guide rankings, and has a strong record in cyber fraud recovery claims. As well, he develops a broad range of civil and commercial litigation such as immigration, personal injuries and employment issues. He can be contacted at Arthur@boasecohencollins.com.
Jasmine Kwong is an Associate Solicitor at BC&C, developing her practice in both criminal and civil litigation. She is involved in cases across various areas of law, including fraud recovery claims, contractual disputes, employees’ compensation, personal injury claims, defamation, and matrimonial matters. She can be contacted at jasmine@boasecohencollins.com.
