KUALA LUMPUR: The Securities Commission Malaysia (SC) cautioned the public on a new investment. scam that uses fake Information Memorandums (IM) 1 to procure investment from the public, falsely claiming that it has been lodged with or endorsed by the SC.
Under the Capital Markets and Services Act 2007 (CMSA), unlisted public companies issuing IMs to raise funds are required to lodge them with the SC within seven days of issuance to potential investors.
However, the creation of an IM does not constitute an endorsement by the SC, it said in a statement today.
"In this case, the SC found that the company represented to investors that it has issued an IM purportedly lodged with the SC, thus misleading investors and lending credibility to its investment scheme. The SC confirms that the company did not lodge any IM with the SC and suspects that it is part of an investment scam."
Immediate action has been taken, including filing a police report and adding the company to SC's Investor Alert List, it said.
"The SC views this matter seriously, as such an act may lead the public to believe that the SC endorses and approves the investment product.
"The public is strongly encouraged to verify any claims using the name of the SC or any of its officers and to report this as well as any suspicious activities or investment. information to the SC. This will help protect investors from potential risks and assist them. in making informed investment decisions,'' it said.
The public can verify investment offers through the SC Investment Checker at www.sc.com.my/investment-checker