In the recent years, there has been a boom in social media users who provide financial information to their followers. These users, referred to as “finfluencers” provide financial recommendations to their audiences, advising them on various investment options and their short term and long-term effects, oftentimes undermining the risks involved. The information is generally propagated through short and long format videos that amass millions of views and impact a large number of individuals. However, instances where the finfluencers have provided wrong information, or published information to serve their personal interests, have shown the requirement of regulating this area of social media. Without regulation, these finfluencers may promote unsuitable products, misguide their audience, or engage in practices like pump-and-dump schemes, leading to financial losses among their followers and viewers.

UAE’s Securities and Commodities Authority (SCA) has issued Resolution No. 10 of 2025, a regulatory framework for finfluencers, a first of such law in the Middle East. The regulation was issued in May 2025, and took immediate effect following its publication.  

The regulation defines a finfluencer as any person who provides financial recommendation, registered with the competent authority. Thus, the new law mandates the registration of a finfluencer and provides a framework regarding licensing requirements. 

Registration of Finfluencers 

To register as a finfluencer, one must fulfil the following conditions: 

  1. They must be a financial analyst accredited by a competent authority or hold a Certified Financial Analyst certificate and be an independent, i.e., not employed by any entity licensed by the Authority or an equivalent supervisory entity.
  2. They must be an influencer having a minimum of 1000 followers.
  3. They must possess financial and technical experience in the financial or investment field for not less than six (6) months. 
  4. They issue constant professional recommendations more than once based on foundations, studies, standards and analyses.

To register with the authority, a registration fee will be levied, to be paid after the approval by the authority. On application, the process will be finalized within five working days and the application may be approved, approved with conditions, or rejected. The authority will state the conditions for rejection. The finfluencer license will be required to be renewed annually. 

Obligation of a finfluencer: 

The law imposes certain obligations on the finfluencer as per Article 5 of the resolution: 

  1. Disclose vital information
  2. The law requires the finfluencer to display their own name, registration number and the name of the participant, if any. They must also display whether they are a financial analyst or a physical person.
  3. Disclosure regarding the information broadcasted
  4. The finfluencer is required to differentiate between facts, statistics, estimates, opinions, personal experience etc., when providing information. They are also required to provide their sources of information. The law requires finfluencers to be objective, transparent, and impartial, and advices against bias and exaggeration. The law also clearly states that finfluencers must not provide misleading information and ensure that the information provided is up to date. They must also inform the audience whether their recommendations are related to high-risk products.
  5. Disclosure regarding conflict of interests
  6. The finfluencer must clearly disclose all circumstances that affect the objectivity of their financial recommendation. They must also reveal whether they have received any consideration for promoting the financial instrument or information. If a third party participates in their recommendation, they must reveal whether such person holds or held any position of influence in relation to the financial recommendation.
  7. Obligations with respect to the publication of financial recommendation
  8. If a finfluencer publishes financial recommendation issued by a third party, they must disclose the identity and details of the third party, and the circumstances that could affect the objectivity of the finfluencer with respect to the recommendation. They must also publish the date and time of publishing the information.
  9. Obligation to maintain and submit records and documents whenever required by the competent authority 
  10. Obligation to attend periodic training programs and observe code of ethics issued by the authority 
  11. Obligation to inform an investor of the importance of obtaining specialized advisory opinion from entities licensed by the authority before making any investment decision, in accordance with the investor’s capabilities and investment objectives

Conclusion

Resolution No. 10 of 2025 issued by the SCA is a welcome step in regulating the unchecked flow of financial information on social media. The new law will help in curbing misinformation in the guise of financial advice, thus protecting the interests of unsuspecting social media users. The law will promote qualified financial advisors in coming to the forefront, and ensure that verified and up to date information is granted to the public.