The Securities and Futures Commission (SFC) has suspended Franky Wong, a financial influencer (finfluencer), for 16 months after his conviction for operating an unauthorized investment advice service through a subscription-based Telegram chat group.

"Stock Sniper" Silenced: Financial Influencer Gets 16-Month Ban

Wong Ming Chung, also known as the Stock Sniper in the social media, who worked for Tse's Securities Limited (TSL), will serve his suspension from March 19, 2025, to July 18, 2026, the regulator announced today (Thursday). Despite holding proper licenses for securities dealing and advising, Wong ran the chat group in his personal capacity outside his firm's oversight, violating securities regulations.

"Investors should remain vigilant and exercise caution when availing themselves of information shared by finfluencers," warned Christopher Wilson, SFC's Executive Director of Enforcement.

"Some finfluencers who provide investment-related content on social media and other online platforms may in fact be conducting regulated activities for which they need to be licensed by the SFC."

The problem with "finfluencers" has become so significant that France was already considering regulating individuals with large social media followings in 2023, as they have a direct influence on the financial decisions of savers.

Conviction

The suspension follows Wong's conviction last June in the Eastern Magistrates' Court, where he pleaded guilty to carrying on a business advising on securities without proper authorization. The court fined him HK$10,000 and ordered him to pay the SFC's investigation costs.

The regulator said Wong operated the unauthorized service between January 2018 and May 2019. While he was licensed to provide investment advice through his employer TSL during this period, regulations required him to conduct such activities only through his accredited firm.

"Finfluencers who are not licensed may not adhere to the SFC's requisite standards of conduct and accountability, and investors may suffer by relying on their advice," Wilson added, urging investors to verify that individuals providing investment advice are properly licensed.

In determining the length of the suspension, the SFC said it considered all relevant circumstances, including Wong's cooperation during the investigation.

Traders Trust Finfluencers More Than Experts

A recent case highlights the growing regulatory scrutiny of "finfluencers"—individuals who use social media platforms to share financial advice and investment recommendations.

A study from last year revealed that retail traders trust popular online personalities more than their family, friends, or even professional investment advisors when making decisions about their portfolios.

This finding was further confirmed by a separate survey conducted by Germany's BaFin, in which over 50% of young crypto investors admitted that their investment decisions are primarily based on influencer opinions.