Post by account_disabled on Feb 25, 2024 2:12:25 GMT -5
Despite the call for caution in stock market operations and investments in general, advertisements about how to get rich proliferate, often involving sophisticated instruments such as options or futures contracts or volatile and poorly regulated ones such as cryptoactives. The fascination of the general public is greater if the strategy uses trendy terms such as “arbitrage in cryptoassets” or “robot-traders that use artificial intelligence”.
In the creator and social media economy, we need to remember our parents’ advice about being careful with “bad influences.” It has become commonplace to offer courses about selling courses, in which the hope of extra income or financial freedom is the fuel for a digital marketing pyramid and affiliate programs.
Financial influencers
Something similar occurs with the offering of courses on investment methods. There is academic controversy about the effectiveness of graphical analysis or the likelihood of success for retail investors like day traders , but B2B Email List no one likes to hear that they can't beat the market. Add to this the mixture of dopamine and hope, which fuel the desire to transform probabilities into money.
Recently, the CVM initiated a public hearing on the rules applicable to financial influencers, after conducting a regulatory impact analysis. The Brazilian regulator seeks comments from the market on three perspectives involving the topic.
Spacca
First, in terms of contracting and transparency, the concern is to highlight the agreements concluded between market participants and influencers, in order to highlight conflicts of interest in the recommendations.
Second, more generally, the CVM seeks subsidies to modernize the rules on regulated professionals (advisors, consultants, analysts and managers, among others) in view of the dissemination of information on social media, which have a peculiar dynamic, given the diversity of formats, the greater frequency of posts and phenomena such as the viralization of content and cancellations. As we learned from the GameStop case, the power of the collective on social networks can significantly impact price formation in the market, facilitating manipulation and the spread of false information.
Third, the CVM is concerned with the role of influencers in effectively recommending the purchase or sale of securities, bringing them closer to the analyst profession. The scope of the securities analyst activity is delimited by the concept of “analysis report”, designed in the typical format of research houses , but today radically modified given the flexibility with which content can be published.
In these cases, current regulations require prior authorization by the CVM as a way of ensuring minimum requirements for a professional to recommend investments.
The three points raised in the public consultation are fundamental, but there is an additional challenge in this last point. The influencer will not always be a professional authorized by the CVM and the investment disclosed will not always have been registered with the authority.
A likely situation – and a recurring one in the recent past – is the offering of different products that, ultimately, are collective investment contracts that promise economic benefits that will result from the efforts of third parties, or, in other words, securities.
In the creator and social media economy, we need to remember our parents’ advice about being careful with “bad influences.” It has become commonplace to offer courses about selling courses, in which the hope of extra income or financial freedom is the fuel for a digital marketing pyramid and affiliate programs.
Financial influencers
Something similar occurs with the offering of courses on investment methods. There is academic controversy about the effectiveness of graphical analysis or the likelihood of success for retail investors like day traders , but B2B Email List no one likes to hear that they can't beat the market. Add to this the mixture of dopamine and hope, which fuel the desire to transform probabilities into money.
Recently, the CVM initiated a public hearing on the rules applicable to financial influencers, after conducting a regulatory impact analysis. The Brazilian regulator seeks comments from the market on three perspectives involving the topic.
Spacca
First, in terms of contracting and transparency, the concern is to highlight the agreements concluded between market participants and influencers, in order to highlight conflicts of interest in the recommendations.
Second, more generally, the CVM seeks subsidies to modernize the rules on regulated professionals (advisors, consultants, analysts and managers, among others) in view of the dissemination of information on social media, which have a peculiar dynamic, given the diversity of formats, the greater frequency of posts and phenomena such as the viralization of content and cancellations. As we learned from the GameStop case, the power of the collective on social networks can significantly impact price formation in the market, facilitating manipulation and the spread of false information.
Third, the CVM is concerned with the role of influencers in effectively recommending the purchase or sale of securities, bringing them closer to the analyst profession. The scope of the securities analyst activity is delimited by the concept of “analysis report”, designed in the typical format of research houses , but today radically modified given the flexibility with which content can be published.
In these cases, current regulations require prior authorization by the CVM as a way of ensuring minimum requirements for a professional to recommend investments.
The three points raised in the public consultation are fundamental, but there is an additional challenge in this last point. The influencer will not always be a professional authorized by the CVM and the investment disclosed will not always have been registered with the authority.
A likely situation – and a recurring one in the recent past – is the offering of different products that, ultimately, are collective investment contracts that promise economic benefits that will result from the efforts of third parties, or, in other words, securities.