Finfluencer: Finance Creator Law on Investment Recommendations, Conflicts of Interest, Crypto and Financial Advertising

Banking, Finance & Crypto: What matters

Anyone who recommends specific financial instruments in social media can make an investment recommendation within the meaning of the Market Abuse Ordinance. Then obligations apply to the objective presentation and to disclose conflicts of interest, such as one’s own positions or remuneration. Anyone who recommends shares that they own to sell them after the price increase is committing Scalping, a forbidden market manipulation.

Individual investment advice or asset management requires a permit. Cooperations with brokers and trading apps are allowed if they are marked correctly and do not represent unauthorized investment brokerage. According to the MiCAR, special requirements for marketing communications apply to crypto values. We advise financial creator and financial companies directly, also on tax issues.

Typical situations in which we help

• In their content, they talk about individual stocks or crypto values.
• You have a cooperation with a broker or a trading app.
• You offer a paid signal or depot subscription.
• The financial supervisory authority or the public prosecutor’s office wrote to you.
• You advertise loans, insurance or accounts.

Legal basis at a glance

Investment Recommendations

Recommendations on specific financial instruments must be presented objectively. Conflicts of interest such as own positions, remuneration or participations are to be disclosed.

Market manipulation

Scalping and the distribution of misleading information are prohibited and punishable. Own positions should be disclosed and trade bans before and after recommendations should be observed.

Permission Obligations

Investment advice, investment brokerage, financial portfolio management and certain crypto services need permission. Signal subscriptions and copy trading are to be specially checked. Commercial permit requirements apply to credit and insurance brokerage.

Crypto

Marketing communications on crypto values must be clearly recognizable, honest and compatible with the white paper. Advertising for unauthorized providers is risky.

That’s how we go

1. 1

   Initial assessment

   You briefly describe the facts to us and send documents such as a contract, cease-and-desist letter or screenshots. We will tell you promptly where you stand and what the next steps will cost.

2. 2

   Secure evidence and deadlines

   We document posts, stories and chat history in court and record all deadlines. Content disappears quickly, especially with social media.

3. 3

   Set strategy

   Together we decide whether negotiation, defense, cease-and-desist letter or contract drafting is the right way. It is always about your reach and your business relationships.

4. 4

   Implement and enforce

   We negotiate, formulate, answer and, if necessary, go to court, also in an urgent procedure. You will regularly be informed of what is happening.

Regarding the costs: Before every step we tell you what it costs. Depending on the case, we charge a flat-rate fee or by hourly rate according to the Lawyers’ Remuneration Act (RVG). If the opponent is obliged to reimburse, for example in the case of a justified cease-and-desist letter, we will claim these costs for you. More on this on our page Fee.

Common mistakes to avoid

• Do not disclose your own positions.
• Give individual investment tips without permission.
• Advertise for unauthorized crypto vendors.
• Offer signal subscriptions without a regulatory review.