SC issues guidance note on provision of investment advice

The SC cautioned the public against dealing with unlicensed investment advisers as they could be defrauded. — Picture from Twitter/SCMalaysia
The SC cautioned the public against dealing with unlicensed investment advisers as they could be defrauded. — Picture from Twitter/SCMalaysia

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KUALA LUMPUR, Dec 30 — The Securities Commission Malaysia (SC) today issued a guidance note to provide clarity to the industry and the public on conduct which it would consider as falling within the regulated activity of providing investment advice under the Capital Markets and Services Act 2007 (CMSA).

The Guidance Note on Provision of Investment Advice can be downloaded at www.sc.com.my/regulation/guiding-principles.

“(The note) 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 regulator said in a statement today. 

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

Investors were 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,” it said. 

It added that 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 10 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 03-6204 8999 or email [email protected],” it said. — Bernama

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