ASIC warns Gen Z in Australia about rising risk from using social media and AI for financial guidance, noting a survey where 63% rely on social media for investment tips and 18% consult AI platforms.

Regulators stress that financial advice should come from properly licensed professionals, especially for cryptocurrency, retirement accounts, and other investments.

Commissioner Alan Kirkland urges readers to balance online information with credible, evidence-based sources and cautions that promotional or incomplete online content can mislead; MoneySmart provides free, independent guidance on budgeting, investing, and scams.

Regulatory actions and better financial literacy resources could shift attention from virally driven content to credible sources, potentially stabilizing markets and guiding capital toward well-informed decisions.

Key takeaways emphasize critical thinking, sense-checking information, and using MoneySmart tools to make informed financial decisions.

Trust in advisers remains important, with research showing brokers valued for experience and knowledge—43% cite convenience or savings and 57% cite market experience.

Despite optimism about the financial future, fewer respondents feel strong confidence in achieving long-term financial stability.

The article ends with a standard disclaimer that the content reflects the author's opinion and is not investment advice.

Liquidity risks arise from thin, concentrated liquidity, increasing the chance of sharp reversals when narratives fade, risking losses for traders with exposed positions.

Credibility matters in selecting financial sources: 35% prioritize credibility/experts, 15% independent sources, 13% personal contacts; users should verify online claims with independent guidance.

Policy implications include potential new guidance or licensing requirements for AI-based financial advice and ongoing enforcement against misleading finfluencers.

MoneySmart refreshes its site to be more engaging while continuing to offer a trusted alternative to social media content.