In an effort to educate the public of the ongoing problem with online investment and trading scams, often highlighted by our organization, the Malaysian Securities Commission (SC) has published a note guiding citizens on how to approach any possible investment or trading advisors that may try to solicit business.
The regular indicated that it has seen an “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 members of the public, who are given access to these recommendations and/or advice upon payment of a fee.”
Specific to Malaysian residents, the regulator said that “investors are reminded 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 License Holders www.sc.com.my/licensed-registered-persons and List of Registered Recognised Market Operators www.sc.com.my/rmo.”
The regulator also reiterated stiff penalties for those individuals who are “carrying on a business of giving investment advice without a license”. Such offenses, the SC says are “punishable with a fine not exceeding RM10 million or imprisonment not exceeding ten years or both, if found guilty.”