KUALA LUMPUR: The Securities Commission (SC) has updated the guidance note to address the growing popularity of financial influencers (finfluencers) who promote capital market products and services on social media, as well as to create greater public awareness.
The SC, in a statement today, said the updated note on the provision of investment was to clarify its regulatory expectation on finfluencers' sharing of financial insights and recommendations on social media.
It aims to uphold parity in terms of regulatory treatment of finfluencers' activities as providing investment advice is a regulated activity under the securities laws.
"In particular, the guidance note clarifies that 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 added.
The SC 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).
According to the commission, offenders may be liable to a fine not exceeding RM10 million or imprisonment not exceeding 10 years or both.
The SC also has published an informative infographic with frequently asked questions and a checklist to guide finfluencers to comply with the CMSA.
Finfluencers should verify that the companies they promote are licenced or approved by the SC by using the latter'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, amongst others, issuance of guidance to the public.
"The regulator will take actions, where necessary, towards ensuring a fair and orderly market," it added