KUALA LUMPUR: The Securities Commission (SC) has cautioned the public against dealing with unlicenced investment advisers as they can be defrauded or used as part of a market manipulation scheme.

The SC also issued a Guidance Note on Provision of Investment Advice to provide clarity to the industry and the public.

This is in regards to any conduct which the regulator will consider as falling within the regulated activity of providing investment advice under the Capital Markets and Services Act 2007 (CMSA).

The guidance note can be downloaded at www.sc.com.my/regulation/guiding-principles. 

"It is in response to the increasing number of queries and complaints received regarding various social media that appear to be providing specific stock recommendations and/or investment advice to members of the public, who are given access to these recommendations and/or advice upon payment of a fee. 

"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," tge SC said in a statement.

Information on persons licenced or registered by the SC can be found at www.sc.com.my/licensed-registered-persons and www.sc.com.my/rmo.

"Any person carrying on a business of giving investment advice without a license commits an offence under the CMSA which is punishable with a fine not exceeding RM10 million or imprisonment not exceeding ten years or both, if found guilty," it said.

The SC said members of the public who have any information on any person providing investment advice without a licence may contact its Consumers and Investors Department at 03 6204 8999 or email aduan@seccom.com.my.