In an era where social media influencers, or crypto influencers, or “finlfluencers,” wield significant influence over investment decisions, France is taking a unique step toward regulating this burgeoning sector. On September 7, 2023, the Autorité des Marchés Financiers (AMF) and the Autorité de Régulation Professionnelle de la Publicité (ARPP) unveiled the “Responsible Influence Certificate,” a non-obligatory certification for financial influencers. This certificate, initially introduced in 2021, has been expanded to include influencers advertising crypto-assets, signifying France’s commitment to responsible financial promotion.
The Responsible Influence Certificate offers a structured training module designed to educate financial influencers about the intricacies of promoting investment products, ranging from equities and bonds to ETFs, funds, derivatives, and even wine. Crucially, this certificate also covers the emerging and rapidly evolving world of crypto-assets.
To attain the certificate, influencers must correctly answer at least 75% of 25 multiple-choice questions. While it is not a legally binding requirement, the ARPP retains the authority to revoke it from influencers who fail to adhere to its guidelines. Furthermore, prospective financial influencers must first obtain the “general Certificate” created by the ARPP, underscoring the commitment to responsible advertising across all sectors.
Promoting Transparency: Crypto Certification in Evolving Landscape
This move comes in the wake of a May 2023 amendment passed by the French Senate, allowing registered cryptocurrency companies to collaborate with social media influencers for promotional activities. France’s approach is in stark contrast to the United Kingdom, where regulators have issued stern warnings to influencers, cautioning that their crypto promotions could result in severe penalties, including imprisonment and unlimited fines. Meanwhile, the European Consumer Organisation is actively advocating for a complete ban on crypto advertising by influencers.
France’s Responsible Influence Certificate reflects a pragmatic middle ground in the global debate over crypto promotion. It acknowledges the growing role of influencers in shaping financial decisions while ensuring that their activities are conducted responsibly and ethically. By requiring influencers to pass a certification process and adhere to specific guidelines, France aims to strike a balance between fostering financial innovation and protecting investors.
The Responsible Influence Certificate not only demonstrates France’s commitment to responsible financial promotion but also serves as a potential model for other countries grappling with the challenges posed by the rise of crypto-assets and the influencer marketing phenomenon. While the crypto industry continues to evolve, this certification offers a measure of assurance to both investors and regulators, promoting transparency and accountability in an otherwise complex and rapidly changing landscape.