"The SC aims to uphold parity in terms of regulatory treatment of finfluencers’ activities as providing investment advice is a regulated activity under the securities laws." — SC
KUALA LUMPUR (July 18): Promoting a capital market product or service on social media platforms with expectation of commissions or other rewards will require a licence from the Securities Commission Malaysia, the regulator said in a statement on Thursday.
It said this as it provided an update to its Guidance Note on the Provision of Investment Advice to address the growing popularity of financial influencers or 'finfluencers' that are promoting market products and services on social media.
"The update clarifies the SC’s regulatory expectation on finfluencers’ sharing of financial insights and recommendations on social media. The SC aims to uphold parity in terms of regulatory treatment of finfluencers’ activities as providing investment advice is a regulated activity under the securities laws," the SC said in a statement.
The update to the guidance note clarifies that the promotion of a capital market product on social media platforms may require a licence from the SC in certain circumstances. "For example, the sharing of financial insights or recommendations that promote certain capital market products to followers with expectation of commissions or other rewards will require a licence," it said.
"Finfluencers should take note that engaging in unlicensed regulated activities is an offence which is punishable under the Capital Markets and Services Act 2007 (CMSA). Any person found guilty may be liable to a fine not exceeding RM10 million or imprisonment not exceeding ten years or both," the SC said.
"Finfluencers should verify that the companies they promote are licensed or approved by the SC by using the SC’s Investment Checker. The SC, as part of its discharge of its regulatory function, actively monitors the capital market and will continue to address any developments and trends by, among others, issuance of guidance to the public. The regulator will take actions, where necessary, towards ensuring a fair and orderly market," its statement further read.
Source: TheEdge - 19 Jul 2024
Created by edgeinvest | Aug 23, 2024
Created by edgeinvest | Aug 23, 2024
Created by edgeinvest | Aug 23, 2024
Created by edgeinvest | Aug 23, 2024
Created by edgeinvest | Aug 23, 2024
Created by edgeinvest | Aug 23, 2024
Created by edgeinvest | Aug 23, 2024
Created by edgeinvest | Aug 23, 2024
Created by edgeinvest | Aug 23, 2024