The Canadian Securities Administrators (CSA) and Canadian Investment Regulatory Organization (CIRO) (the regulators) have released Joint Canadian Securities Administrators and Canadian Investment Regulatory Organization Staff Notice 31-369 Guidance on the Application of Securities Legislation to Finfluencer Activity (the Staff Notice) which provides guidance for social media financial content creators and influencers (finfluencers).
As social media is increasingly a source of financial information for Canadians, with content creators playing a role in shaping these conversations, the regulators note that activities of some content creators and influencers can introduce new risks to investors. The goal of the Staff Notice is to help social media content creators and influencers, and the firms they work with understand and follow securities laws when posting information about investing online. The guidance in the Staff Notice offers concrete examples of how both registrants and content creators can understand and be compliant with the requirements set out by securities regulators.
The CSA and CIRO expect content creators and influencers, as well as the registrants and issuers who work with them, to become familiar with and follow the rules set out in the guidance. The regulators warn that breaking securities laws can lead to serious penalties and other enforcement actions.
Joint Canadian Securities Administrators and Canadian Investment Regulatory Organization Staff Notice 31-369 Guidance on the Application of Securities Legislation to Finfluencer Activity is available for download from the websites of the participating jurisdictions.
For more information, please call Barbara Hendrickson at BAX Securities Law (647) 403-4606.
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