The Securities Commission of Malaysia Requires Finfluencers to Obtain Licenses

Recently, the Securities Commission of Malaysia (SC) has updated its Guidance Note on the Provision of Investment Advice, setting out the requirements for finfluencers who share financial insights and recommendations on social media platforms, with a view to raising public awareness.

The SC believes the provision of investment advice is a regulated activity under the Securities Act and therefore finfluencers should be regulated accordingly.

With this update, the SC clarifies the licensing requirements by requiring that finfluencers promoting capital market products on social media may be required to obtain a license issued by the Commission. In other words, those who provide financial advice to their followers and promote financial products for commissions and other rewards will need to obtain a license.

Under the Capital Markets and Services Act 2007, it is an offense to carry out unlicensed regulated activities. Offenders may face a fine of up to RM10 million or up to 10 years in prison.