The Greek government is intensifying efforts to combat unlicensed investment advisory services, following alarming reports of unauthorized individuals and companies—including social media influencers—offering financial guidance without proper accreditation. The Hellenic Capital Market Commission (HCMC) has referred 70 cases of such unauthorized activity to the prosecutor’s office, warning investors of significant financial risks.

The new measures aim to send a message that market manipulation and unlicensed financial advice will not be tolerated, and are added to the fines already imposed by the HCMC since 2019, totaling over €42 million for financial misconduct.

Greek Gov Crackdown

In a podcast at OT, Vasiliki Lazarakou, Chair of the HCMC, emphasized the dangers of engaging with unlicensed advisors. “Before making any investment, citizens must verify whether the person providing advice is legally authorized. If they are not, there is a high likelihood they will lose their money,” she stated on the Babel podcast. The Commission has issued a public warning after receiving multiple complaints from individuals who were solicited via phone or email by unlicensed advisors.

In response, the government is stepping up regulatory enforcement, leveraging artificial intelligence to identify suspicious activities more effectively. Lazarakou announced that AI-driven monitoring will allow authorities to detect and prevent fraudulent investment schemes more efficiently.

Stricter Oversight on Cryptocurrencies

The crackdown also extends to cryptocurrency transactions, which have largely operated outside the scope of regulation. A new legal framework, introduced by the Ministry of Finance, will require stricter supervision of crypto-related activities. “Until now, our role was limited to anti-money laundering oversight. Under the new law, regulators will ensure full compliance with all financial regulations,” Lazarakou explained.

Introducing Mystery Shopper Audits

A key component of the government’s strategy is the introduction of mystery shoppers—undercover evaluators who will assess how financial firms interact with clients. This tool, widely used across Europe, aims to ensure that investment firms and advisors follow regulatory guidelines and provide accurate information to consumers.

Source: OT