Finfluencers and generation Z: between financial education and risky advice

The rapid rise of finfluencers

Over the past two years, finfluencers have grown rapidly, making complex financial topics such as tax optimisation, stock market investing and, in particular, blockchain technologies and crypto-assets more accessible to a wider audience.

According to a survey conducted by the Fondation ABBL pour l’éducation financière (the ABBL Foundation) in October 2025 among 1,026 students, 46% of them seek financial information on social media:

• 41.34% on TikTok
• 13.57% rely on Instagram.

This highlights the growing role of social media as a primary source of financial guidance for younger generations.

With just a few clicks, increasing numbers of young investors receive advice from influencers active on YouTube, TikTok, Twitch or Instagram. These finfluencers often have a strong grasp of social media dynamics, unlike many traditional financial professionals who may struggle to engage with younger audiences.

Risks and challenges

Despite their popularity, many finfluencers lack formal training, professional knowledge and/or experience in finance. They also rarely provide adequate warnings about the risks associated with investing.

Misleading information or disguised advertising can push consumers towards high-risk financial products, potentially resulting in significant financial losses.

Regulatory developments at EU level

The absence of a coherent national or European supervision and liability framework has raised concerns, prompting consumer protection organisations to warn citizens about certain finfluencer practices.

Recognising the growing impact of finfluencers on financial behaviour, the European Parliament has begun taking steps to address the associated risks. On 18 December 2025, the Parliament agreed new measures to encourage citizens to participate in financial markets while ensuring individual investors are protected from misleading or biased information.

As part of this effort, EU Member States will be required to promote financial education and literacy programmes focusing on the responsible purchase of investment and insurance products. Where relevant, these measures should be tailored to the needs of different age groups and specific target audiences.

Given that younger clients are particularly vulnerable to online mis-selling, often amplified by influencers and social media, MEPs have also required such promotional activities to be subject to supervision. When investment firms use so-called financial influencers to promote financial products or contracts, they must have a written agreement in place, retain the influencers’ contact details and exercise control over their promotional activities.

National perspectives and guidance

In parallel, the European Securities and Markets Authority (ESMA) has recently published a series of tips encouraging finfluencers to promote financial products and services responsibly.

At national level, Luxembourg currently has no specific regulation regarding finfluencers. However, the CSSF regularly issues guidance and warnings to financial consumers.

Legislative work will continue in the spring, with an indicative plenary sitting on this matter scheduled for 27 April 2026.

ESMA tips for responsible promotion

ESMA encourages finfluencers to:

• state clearly if content is sponsored or if they may benefit
• be fair, clear and not misleading, and distinguish facts from opinions
• make risks explicit, not only potential rewards, especially for high-risk products
• avoid personalised advice if not authorised, and don’t pretend to be an expert

Source: ESMA, “Finfluencers – Tips for responsible promotion” (2025).