Greek Government Cracks Down on Unlicensed Investment Advisors

The Greek government has intensified its efforts to combat unlicensed investment advisory services, in response to concerning reports of individuals and companies, including social media influencers, providing financial guidance without proper accreditation. The Hellenic Capital Market Commission (HCMC) has identified 70 cases of unauthorized activity and has referred them to the prosecutor’s office, warning investors about the significant financial risks involved.

These new measures are intended to clearly communicate that market manipulation and unlicensed financial advice will not be tolerated. They supplement the fines already levied by the HCMC since 2019, which amount to over €42 million for financial misconduct.

Vasiliki Lazarakou, Chair of the HCMC, highlighted the dangers of engaging with unlicensed advisors in a podcast at OT. She stressed the importance of verifying the legitimacy of individuals offering financial advice before making any investment, cautioning that failure to do so could result in financial losses. The Commission issued a public warning after receiving numerous complaints from individuals who were approached by unlicensed advisors via phone or email.

To address this issue, the government is enhancing regulatory enforcement measures by utilizing artificial intelligence to more effectively identify suspicious activities. Lazarakou shared that AI-powered monitoring will enable authorities to identify and prevent fraudulent investment schemes more efficiently.

In addition to cracking down on unlicensed investment advisors, the Greek government is also implementing stricter oversight of cryptocurrency transactions, which have largely operated outside regulatory bounds. A new legal framework introduced by the Ministry of Finance will enhance supervision of crypto-related activities. According to Lazarakou, regulators will now ensure full compliance with all financial regulations, expanding their role beyond anti-money laundering oversight.

As part of its efforts to protect investors, the government is introducing mystery shoppers, undercover evaluators who will assess how financial firms interact with clients. This approach, widely used across Europe, is aimed at ensuring that investment firms and advisors adhere to regulatory guidelines and provide accurate information to consumers.

Overall, the Greek government’s crackdown on unlicensed investment advisors, strengthened oversight of cryptocurrency transactions, use of artificial intelligence for monitoring, and deployment of mystery shoppers reflect a comprehensive strategy to safeguard investors from financial risks and fraudulent activities. By utilizing a combination of regulatory measures and technological tools, authorities are working to create a more secure environment for financial transactions and investments in Greece.