PETALING JAYA: The Securities Fee Malaysia (SC) has up to date the Steerage Notice on the Provision of Funding Recommendation (Steerage Notice). That is to deal with the rising reputation of
monetary influencers (finfluencers) selling capital market services on social media, in addition to to create larger public consciousness.
The replace clarifies the SC’s regulatory expectation on finfluencers’ sharing of monetary insights and suggestions on social media. The SC goals to uphold parity when it comes to regulatory remedy of finfluencers’ actions as offering funding recommendation is a regulated exercise underneath the securities legal guidelines.
Particularly, the Steerage Notice clarifies that promotion of a capital market product on social media platforms could require a licence from the SC in sure circumstances. For instance, the sharing of monetary insights or suggestions that promote sure capital market merchandise to followers with expectation of commissions or different rewards would require a licence.
Finfluencers ought to take observe that partaking in unlicensed regulated actions is an offence which is punishable underneath the Capital Markets and Companies Act 2007 (CMSA).
Any individual discovered responsible could also be liable to a wonderful not exceeding RM10 million or imprisonment not exceeding ten years or each.
To information finfluencers to adjust to the CMSA, the SC has additionally revealed an informative infographic with often requested questions and a guidelines.
Finfluencers ought to confirm that the businesses they promote are licensed or accredited by the SC by utilizing the SC’s Funding Checker.
The SC, as a part of its discharge of its regulatory perform, actively displays the capital market and can proceed to deal with any developments and traits by, amongst others,
issuance of steering to the general public. The regulator will take actions, the place mandatory, in direction of guaranteeing a good and orderly market.
The Steerage Notice may be downloaded at https://www.sc.com.my/regulation/steering notes-and-guiding-principles and the infographic is obtainable at https://www.sc.com.my/investor-empowerment/info-on-finfluencer.