SINGAPORE: In a concerning trend for the financial landscape, the Monetary Authority of Singapore (MAS) has reported eight complaints against financial influencers, also known as 'finfluencers', just within the first few months of 2025. This figure marks a significant increase from the average of five complaints per year observed over the past five years.

Most of these complaints stemmed from comments made by two prominent finfluencers, whose recent posts triggered investor concern and subsequent withdrawals from the investment platform, Chocolate Finance. Mr. Alvin Tan, an MAS board member and Minister of State for Trade and Industry, addressed these issues while responding to parliamentary queries. This discussion came on the heels of a temporary suspension of immediate fund withdrawals by Chocolate Finance earlier this year.

On March 10, Chocolate Finance announced the temporary halt on instant withdrawal options due to an overwhelming demand from users looking to withdraw their funds. Notably, just one day prior, the well-known personal finance influencer Seth Wee—popularly known as Sethisfy—uploaded a revealing YouTube video explaining his own decision to withdraw all of his investments from the platform.

In response to concerns raised, Mr. Tan elaborated on the significance of protecting retail investors. He highlighted a recent incident with a financial platform that promised instant withdrawals and allowed users to utilize their investments via a linked debit card. Chocolate Finance had previously offered instant withdrawals up to S$20,000 (US$15,000) daily and introduced a debit card in February. However, due to unforeseen circumstances, transactions were paused last month, resuming with a limit of S$250 per transaction for increased security.

While the platform's terms and conditions outlined these product features, Mr. Tan emphasized the need for clearer communication to ensure that customers fully understood the implications of their investments. 'The product features do not always necessitate regulatory approval, but they must adhere to stringent risk management and transparency standards,' he noted.

The MAS is currently reviewing practices concerning investment platforms to ensure compliance with these protective measures. Mr. Tan reassured the public that platforms holding a Capital Markets Services license are mandated to keep customers' assets segregated, thereby safeguarding client investments. He remarked, 'The recent surge in withdrawal requests has demonstrated that these safeguards functioned as intended,' noting that customers’ assets were adequately protected, with withdrawals processed within three to six working days.

As the popularity of finfluencers continues to rise, Mr. Tan urged investors to be well-informed. 'Understanding the features and risks of financial products is crucial before making investment decisions. Consulting a professional financial advisor can provide further clarity,' he advised.

With the potential pitfalls of following financial influencers becoming increasingly evident, investors are reminded to tread carefully and seek professional guidance before acting on advice found online.