A new report examines the impact of social media financial influencers, highlighting disclosure concerns among influencers making stock recommendations.

The report published Thursday by the CFA Institute found Gen Z investors were more likely to seek investing guidance from financial influencers on social media, also known as “finfluencers.”

Researchers looked at content across TikTok, Instagram and YouTube.

Paul Andrews, managing director for research, advocacy, and standards at the CFA Insitute, said the platforms vary but have similarities when it comes to financial influencer content. 

While some of the content is educational, Andrews said in other cases there are “overt recommendations that are being made,”

“Sometimes the disclosures about these recommendations or promotions are very, very clear and sometimes not so much,” he said. “That's what has us a little bit concerned.”

Andrews said disclosures could be related to whether a social media influencer was being reimbursed for their efforts in some way, whether they own the stock and what credentials they may or may not have. 

In its report, the CFA Institute called for stronger regulation of investment recommendations, and that regulators “engage with finfluencers to advise and clarify which influencer activities are regulated,” among other recommendations.

For the full interview, click the video at the top of this article.