French finfluencers can now prove their knowledge in the financial sector with a "Responsible Influence Certificate."
France is taking a proactive approach to regulating influencers in the financial sector by introducing a non-mandatory "Responsible Influence Certificate."
The initiative brought by two French regulatory bodies, the Autorité des Marchés Financiers (AMF) and the Autorité de Régulation Professionnelle de la Publicité (ARPP), aims to bring a higher level of credibility and ethical conduct among those promoting various investment products, including cryptocurrencies.
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Launched in 2021, the "Responsible Influence Certificate" has already been obtained by over 1,000 influencers in France.
The certificate program is now expanding to include a dedicated course for financial influencers that covers a wide range of investment products, including equities, bonds, ETFs, derivatives, and even unconventional investments like wine and cryptocurrencies.
To earn this specialized certificate, candidates must score at least 75% on a 25-question multiple-choice exam. Though the certification is not legally obligatory, the ARPP reserves the right to revoke it for non-compliance. To qualify for this specialized certificate, influencers must first secure a general certificate that the ARPP provides for influencers across various sectors.
This development comes on the heels of legislative changes in France concerning the use of influencers for promoting cryptocurrencies. The French Senate approved an amendment in May 2023 that allows registered cryptocurrency firms to employ social media influencers for advertising.
The legislation comes in stark contrast to approaches taken in other countries, such as the United Kingdom, where regulatory bodies have warned influencers that they could face up to two years in prison or an unlimited fine for advertising financial products. The European Consumer Organisation has even advocated for a complete ban on crypto advertising by influencers.
The introduction of the Responsible Influence Certificate in France symbolizes a shift towards greater responsibility and ethical considerations in financial promotions, including those related to crypto-assets. While the program is voluntary, its existence represents an alternative approach to outright bans or punitive measures, aiming instead to educate and standardize the activities of financial influencers.
