Investment Influencers Can't Carelessly Give Advice, OJK: Must Have Permission

Photo: Antara

JAKARTA - Social media influencers are reminded not to just give investment advice, because investment advisors must be licensed parties. This was conveyed by Member of the Board of Commissioners for Education and Consumer Protection of the Financial Services Authority (OJK) Tirta Segara.

Tirta explained that the provision is contained in Article 34 of the Capital Market Law, paragraph (1) which states that parties who can carry out activities as investment advisors are those who have obtained a business license from the Capital Market and Financial Institution Supervisory Agency (Bapepam).

"So if an influencer endorses and acts like an investment advisor, then he must obtain a permit. Especially if his party gives advice to the public," said Tirta, quoted on Saturday 4 December.

According to Tirta, the Capital Market Law will continue to apply in accordance with the transitional provisions in Article 70 of the OJK Law, as long as it does not conflict with the OJK Law, so that investment must still be followed.

If the investment advisor does not obtain permission from Bapepam, criminal threats lurk and have been regulated in OJK Regulation Number 5 of 2019 concerning Prohibited Behavior for Investment Advisors and Article 93 of the Capital Market Law.

"So influencers have to be careful because they don't really understand," said Tirta.

He also hopes that on other occasions he can educate the public about investment advisors and to influencers who provide various investment advice.

"Don't let there be a conflict of interest, for example, I buy shares first and then use influencers so that my share price goes up. That could be the case," he concluded.