SC Guidance Note on Provision of Investment Advice – Cautionary Note

The proliferation of individuals providing recommendations on investments or investment products on social media platforms, chat rooms and messaging applications in recent months, may have been contributed by covid-19 restrictions. This development has caused great concern as many individuals, either ignorantly or purposely, when offering these recommendations may cross the fine line where their conduct falls under the definition of carrying out `investment advice’ which is a regulated activity and requires them to be licensed.

In view of this, clarification is necessary in dealing with unlicensed investment activities as investors could be defrauded or exploited as part of a market manipulation scheme. The public had also been reminded to verify the licensing status of the platforms they are investing in, the authenticity of the companies and individuals offering capital market services or products before making any investment decision.

The Securities Commission Malaysia (SC) in its response, has issued Guidance Note on Provision of Investment Advice that provides the clarity as to the activities or conduct which is likely to be considered as a regulated activity of investment advice under the Capital Market and Services Act 2007 (CMSA).

*The SIDC reserves the right to amend the programme as deemed appropriate without prior notice