PETALING JAYA: The Securities Commission Malaysia (SC) has issued a guidance note on provision of investment advice in response to the increasing number of queries and complaints received regarding various social media, chat rooms and messaging applications that appear to be providing specific stock recommendations and/or investment advice to the public for a fee.
The guidance note aims to provide clarity to the industry and the public on conduct which the SC would consider as falling within the regulated activity of providing investment advice under the Capital Markets and Services Act 2007 (CMSA).
The regulator cautions the public against dealing with unlicensed investment advisers as they could be defrauded or used as part of a market manipulation scheme.
In addition, it also reminded investors to verify the licensing status of platforms, companies and individuals offering capital market services or products, including the provision of investment advice, before making any investment decision. Information on persons licensed or registered by the SC can be found at the public register of licence holders and list of registered recognised market operators on SC’s website.
The SC warned that any person carrying on a business of giving investment advice without a licence commits an offence under the CMSA which is punishable with a fine not exceeding RM10 million or imprisonment not exceeding 10 years or both, if found guilty.
