Who Can Give Investment Advice In Malaysia?

Investment advice is everywhere – but not all advice is legitimate.

If you get investment advice (for example, advice and analysis on specific securities), make sure that your advisor is registered and licensed with the Securities Commission Malaysia (SC).

However, if you frequently research or contribute to discussions on investment topics, it may not be clear what constitutes investment advice requiring a license. For example, if you are discussing a stock in a forum, does that require a license? If you talk about the benefits of robotic advisers on social media, can you be fined?

Recently, the SC published a Guidance Note on Providing Investment Advice, which aims to answer these questions. According to the SC, ‚Äúrecommendations or opinions likely to induce a person to take an action or a position (for example buy, sell or hold) concerning a class, a sector or a particular instrument in relation to securities or derivatives, are likely to be considered as “advising others on securities or derivatives” “. Read the guidance note for more information and details on how it relates to specific scenarios.

As an investor, be sure to research the licensing status of any advisor, company, or platform before you engage with them. To do this, consult the public register of license holders www.sc.com.my/licensed-registered-persons and the list of recognized and registered market operators www.sc.com.my/rmo. Dealing with unauthorized investment advisor platforms can be dangerous, as there is a risk of fraud or market manipulation.

If you have information about someone who provides unlicensed investment advice, you can contact the Consumer and Investor Department of SC on +603 6204 8999 or by email at aduan@seccom.com.my.

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Jothi Venkat

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