Experts warn harm as asset managers label Telegram posts as info, evading ads
An increasing number of small and mid-sized asset management companies are posting marketing-related content, such as market analysis and product introductions, on their Telegram channels, but it has been found that no regulations exist to govern such advertising information. A significant portion of the information investors encounter is promotional, but asset managers often classify these posts as simple information sharing rather than investment advertisements.
The Korea Financial Investment Association, which oversees this area, has stated that it is unclear under which category Telegram should fall among online advertisements and that it is difficult to regulate posts approved by compliance officers within asset management firms. Experts warn of potential investor harm due to exaggerated or false advertising and advise that regulations or guidelines for information provided through Telegram channels are necessary.
According to the financial investment industry on the 1st, most mid-sized asset management companies, including Shinhan Asset Management, Hanwha Asset Management, and Timefolio Asset Management, are using Telegram channels to promote their exchange-traded funds (ETFs). Large firms such as Samsung Asset Management and Mirae Asset Global Investments do not operate separate Telegram channels.
The issue lies in the fact that posts on these Telegram channels are not subject to specific regulations. Compliance approval is often not indicated for market analysis or ETF information provided by asset managers.
Generally, advertisements must include review approval statements and investment caution statements. However, these can be omitted in cases where structural limitations make it difficult to include them, such as in audio media like radio, banners, pop-up ads, intrusive ads, or promotional materials. While Telegram channels can accommodate review approval statements, these are often omitted at the discretion of the companies.
A source from an asset management company said, “Even when sharing articles, if they include interpretive statements or link to our products, internal review is required. As long as they do not violate the Korea Financial Investment Association’s advertising review regulations, most posts receive compliance approval.”
The reason Telegram channels have effectively become a regulatory blind spot is that the Korea Financial Investment Association has not clearly defined Telegram posts. Another source from an asset management company pointed out, “Unlike securities analysts, portfolio managers write market analyses or include performance records on Telegram, allowing asset managers relative freedom. While the Korea Financial Investment Association strictly manages Kakao channels and Naver blogs, Telegram remains largely unmonitored.”
The Korea Financial Investment Association explained that it is ambiguous how to classify Telegram messages. “If it were an investment advertisement, it should include investment caution statements. Their absence suggests that the company’s compliance officer may not have classified it as an investment advertisement,” a representative said.
Under Korea Financial Investment Association regulations, online advertisements are categorized as: ▲pop-up or banner ads, interstitial ads, or text ads on internet websites; ▲emails or other electronic mail; ▲text messages (SMS) or multimedia messages (MMS) via mobile phones; and ▲other online media using information and communication infrastructure.
However, the association has not clearly determined how to classify Telegram channels. A Korea Financial Investment Association representative stated, “It is unclear whether Telegram messages should be treated as mobile phone messages or blog ads. Currently, we view them as acceptable if approved by each company’s compliance officer.”
This lack of regulations to manage Telegram channels has raised concerns about potential investor harm due to exaggerated or false advertising in the future.
The Korea Financial Investment Association stated, “We will take measures, such as providing guidelines to member companies through internal deliberations, for issues that arise in the future.”
