The content involves selling products that require a license from the Securities Regulatory Commission to supervise financial influencers

As for Finfluencer (Finfluencer), which is becoming increasingly popular in the region, the Malaysian Securities Regulatory Commission has finally taken steps to supervise and warn the relevant influencers that if they break the law, they may face heavy penalties!

The Securities Regulatory Commission announced today that in order to respond to the growing popularity of financial influencers and increase public awareness, the agency has updated its “Guidelines for Providing Investment Advice”.

“This update clarifies the Securities Regulatory Commission's regulatory expectations for financial influencers to share financial opinions and recommendations on social media.”

The point is that the latest guidelines state that recommending a capital market product on social media may require a license issued by the Securities Regulatory Commission under certain circumstances.

“For example, the act of influencers selling specific capital market products to their followers by sharing financial opinions or recommendations, in anticipation of receiving commissions or other returns from them will require a license issued by the Securities Regulatory Commission.”

The Securities Regulatory Commission reminds all financial influencers that carrying out regulated activities without a license would be illegal and punishable under the 2007 Capital Markets Act (CMSA).

“Offenders will face fines of up to RM10 million, or up to 10 years in prison, or both.”

The Malaysian Securities Regulatory Commission reminds domestic financial influencers, or those who intend to become financial influencers, that their actions may constitute illegal acts!

Today, in addition to updating its “Guidelines for Providing Investment Advice” to expand the scope of supervision to financial influencers, the Securities Regulatory Commission also published relevant infographics to guide stakeholders to comply with the 2007 Capital Markets Act (CMSA) through a series of frequently asked questions and checklists.

A: The Securities Regulatory Commission oversees any capital market products and services advertised or promoted to Malaysians, including trusts, cryptocurrencies, and trading platforms.

A: Think carefully about the online content you've shared, as this may be an activity that requires a license from the Securities Regulatory Commission. Failure to obtain approval from the Securities Regulatory Commission or registration with the Securities Regulatory Commission is an illegal activity that can be punished. You can face a fine of up to RM10 million, or a prison sentence of not more than 10 years, or both.

A: For your own benefit, you should check whether the relevant company is authorized by the Securities Regulatory Commission to operate. Otherwise, you may help fraudsters or unauthorized companies, putting you at risk of legal action by the Securities Regulatory Commission.

A: Make sure the content you share is clear, fair, and balanced, as false or misleading content could lead you to legal action.

A: If you are making investment suggestions for virtual currencies, then posting, sharing, or promoting relevant content online may require approval from the Securities Regulatory Commission.

A: Any trading platform that targets Malaysians and promotes capital market products requires authorization from the Securities Regulatory Commission. If you promote any fraudsters or unauthorized platforms, you may face legal action for aiding a crime.

The Securities Regulatory Commission also reminds financial influencers of the checklist required to promote their behavior:

Are you providing investment advice? Please refer to the latest edition of the “Guidelines for Providing Investment Advice” issued by the Securities Regulatory Commission.

Does the content you post, share, or promote comply with the Securities Regulatory Commission's advertising guidelines? Please ensure that all content posted, shared or promoted complies with the “Capital Market Product and Related Service Advertising Guidelines” issued by the Securities Regulatory Commission.