Financial advice is not entertainment

The EPP Group in the European Parliament wants to strengthen financial literacy and implement higher standards for so-called 'finfluencers' in the digital world. "Financial literacy is not a luxury, it is freedom and security," said Lidia Pereira MEP, the European Parliament’s chief negotiator for the report on financial literacy and the role of finfluencers, voted in plenary today.

"A 20-second video can now influence where millions invest their savings. It looks polished, confident, and data-driven. It is also increasingly shaping real financial decisions, with real consequences. What was once exceptional is becoming the norm," Pereira outlined.

She added, "We cannot ask citizens to be responsible for their financial future while exposing them to an online environment that is opaque and misleading. Therefore, we must foster financial literacy as a life skill. Financial systems must be simplified, and investor protection strengthened."

"Social media has become an entry point to financial information, especially for younger generations. But lines are often blurred between education and advertising. While one content creator may explain basic financial concepts clearly, another may promote high-risk products without disclosing commercial interests," Pereira explained.

"Therefore, we need clear labelling of paid content, honest and visible risk warnings, stronger enforcement against scams, and better cooperation with online platforms. It also means recognising that platforms themselves cannot remain neutral conduits when financial harm is at stake," Pereira said.

"Financial advice is not entertainment; it shapes real decisions. If we fail to address the digital reality, neither education nor regulation will be enough," she concluded.