You have been warned, do take note on this.
Chui Yee Mun
Source: theedgemarkets.com
December 30, 2020 18:49 pm +08
KUALA LUMPUR (Dec 30): The Securities Commission Malaysia (SC) said today it has issued a guidance note 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 investment advice to the public for a fee.
In a statement today, the SC said its Guidance Note on Provision of Investment Advice aims to provide clarity to the industry and members of the public on conduct which the SC considers as falling within the regulated activity of providing investment advice under the Capital Markets and Services Act 2007 (CMSA).
"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," the SC said.
"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.
"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," the SC said.
In the guidance note, the SC said that in the past year, the regulator received an increasing number of queries from the public seeking clarification regarding investment advice activities.
Considering that this activity is gaining more attention, the SC said the guidance note seeks to provide clarification as to when the activity of giving investment advice is likely to be considered as a regulated activity, for the purposes of licensing under the CMSA.
"A person is required to be licensed by the SC for providing investment advice under the Schedule 2 of the CMSA when the activity fulfils any one of the following: (a) carrying on a business of advising others concerning securities or derivatives; or (b) as part of a business, issues or promulgates analyses