On April 22, 2025, the Ontario Securities Commission (OSC) published a news release titled "OSC research uncovers concerns about finfluencers' power of persuasion." The underlying research report, Social Media and Retail Investing: The Rise of Finfluencers (the Report), outlines the impact of financial influencers (finfluencers) on retail investors. A finfluencer leverages their social media channel to share insights on finance and investing. The research was conducted in collaboration with The Decision Lab.
Overview and purpose
The news release describes how finfluencers operate, outlines the key findings and gives a high-level summary of the Report. The Report includes findings of an OSC survey of 655 Canadian retail investors as well as the results of an online randomized controlled trial (RCT) with 1,465 Canadian social media users (both investors and individuals that have not invested before). During the RCT, some participants were exposed to social media posts (mirroring those by finfluencers) as well as to strategies that aim at countering misinformation.
The goal of the news release is to raise awareness of the potential of persuasion by finfluencers, as it is part of the OSC's mandate to safeguard investors from dishonest, improper or fraudulent activities.
Key findings at a glance
1. OSC survey results
- 40% believe that the finfluencers they follow are trustworthy.
- 35% made a financial choice guided by advice from a finfluencer.
- Investors that made a financial decision based on advice from a finfluencer are 7x more likely to trust the finfluencers they follow and are 12x more likely to have been scammed on social media.
2. RCT results
- Nearly 40% of participants who were prompted with social media posts purchased the promoted assets, while approximately only 10% of not exposed participants purchased the promoted assets.
- Individuals that have no experience in investing are more likely to be influenced than investors.
- Countermeasures were effective but did not eliminate the impact of the social media posts.
Conclusion
As the press release points out and the Report demonstrates, finfluencers significantly impact the decision-making of retail investors. Individuals who trust and follow them may be more susceptible to scams on social media. The OSC urges investors to check the registration of any persons or company offering an investment opportunity.
About Dentons
Dentons is the world's first polycentric global law firm. A top 20 firm on the Acritas 2015 Global Elite Brand Index, the Firm is committed to challenging the status quo in delivering consistent and uncompromising quality and value in new and inventive ways. Driven to provide clients a competitive edge, and connected to the communities where its clients want to do business, Dentons knows that understanding local cultures is crucial to successfully completing a deal, resolving a dispute or solving a business challenge. Now the world's largest law firm, Dentons' global team builds agile, tailored solutions to meet the local, national and global needs of private and public clients of any size in more than 125 locations serving 50-plus countries. www.dentons.com
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances. Specific Questions relating to this article should be addressed directly to the author.
