Content related to promoting products requires permits. The China Securities Regulatory Commission regulates financial internet celebrities.

As for the increasingly popular financial internet celebrities (Finfluencer) in the country, the Malaysian Securities Commission has finally taken regulatory action, warning that if relevant internet celebrities violate the law, they may face heavy fines!

Today, the China Securities Regulatory Commission announced that in response to the growing popularity of financial internet celebrities and to enhance public vigilance, the institution has updated its "Guidelines on Providing Investment Advice".

This update clarifies the regulatory expectations of the Securities Commission on financial internet celebrities sharing financial opinions and recommendations on social media.

The key point is that the latest guidelines point out that recommending a capital market product on social media may require a permit issued by the Securities Commission in specific circumstances.

For example, internet celebrities sharing financial opinions or recommendations to promote specific capital market products to followers in anticipation of receiving commissions or other rewards would require a permit issued by the Securities Commission.

The Securities Commission reminds all financial internet celebrities that engaging in regulated activities without a permit would be considered illegal and could result in penalties under the 2007 Capital Markets and Services Act (CMSA).

Offenders may face a maximum fine of 10 million ringgit, imprisonment of up to 10 years, or both.

The Securities Commission Malaysia reminds financial internet celebrities in the country, or individuals intending to become financial internet celebrities, that their actions may constitute illegal activities!

Today, CSRC not only updated its "Guidelines on Providing Investment Advice", but also expanded its regulatory scope to cover financial internet celebrities. They also released relevant infographics, guiding relevant individuals to comply with the Capital Markets and Services Act 2007 (CMSA) through a series of FAQs and checklists.

A: CSRC supervises any advertising or promotion of capital market products and services targeting Malaysians, including reits, cryptocurrencies, and trading platforms.

Carefully consider the online content you share, as it may require approval from the Securities Commission to engage in such activities. Engaging in activities without the approval or registration of the Securities Commission is considered an illegal activity that may result in a fine of up to 10 million ringgit, imprisonment for not more than 10 years, or both.

For your own benefit, you should verify whether the relevant companies are authorized by the Securities Commission to operate. Otherwise, you may inadvertently assist fraudsters or unauthorized companies, exposing yourself to the risk of legal action by the Securities Commission.

Ensure that the content you share is clear, fair, and balanced, as misleading or false content may lead to legal repercussions.

If you are providing investment advice regarding cryptocurrencies, then sharing or promoting related content online may require approval from the Securities Commission.

Any trading platform targeting Malaysians to promote capital market products requires authorization from the Securities Commission. If you promote any fraudsters or unauthorized platforms, you may face legal action for assisting in the crime.

The Securities Commission also reminds financial influencers of the checklist required for promotional activities:

Are you providing investment advice? Please refer to the latest version of the 'Guidelines on Providing Investment Advice' published by the Securities Commission.

Is the content you post, share, or promote compliant with the Advertising Guidelines of the Securities Commission? Please ensure that all content you post, share, or promote complies with the "Advertising Guidelines for Capital Market Products and Related Services" published by the Securities Commission.