SC Issues Guidance Note on Provision of Investment Advice
30 December 2020   |   Kuala Lumpur

The Securities Commission Malaysia (SC) today issued a Guidance Note on Provision of Investment Advice (guidance note) in order to provide clarity to the industry and members of 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).

This guidance note, which can be downloaded at www.sc.com.my/regulation/guiding-principles, is issued 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 members of the public, who are given access to these recommendations and/or advice upon payment of a fee.

The SC cautions members of the public against dealing with unlicensed investment advisers as they could be defrauded or used as part of a market manipulation scheme.

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.

Any person carrying on a business of giving investment advice without a license commits an offence under the CMSA which is punishable with a fine not exceeding RM10 million or imprisonment not exceeding ten years or both, if found guilty.

Members of the public who have any information on any person providing investment advice without a licence may contact the SC’s Consumers and Investors Department at tel +603 6204 8999 or email [email protected].
SECURITIES COMMISSION MALAYSIA
SC-World Bank-IOSCO Asia Pacific Hub Conference 2019: Enhancing Financial Inclusion through Islamic Finance and FinTech
(From left to right):
  1. Abayomi A. Alawode, Head of Islamic Finance, Finance, Competitiveness and Innovation, The World Bank Group
  2. Datuk Syed Zaid Albar, Chairman of the Securities Commission Malaysia (SC)
  3. Dr. Firas Raad, Country Manager for Malaysia, East Asia and Pacific, The World Bank Group 
  4. Datuk Zainal Izlan Zainal Abidin, Deputy Chief Executive of SC
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