Many influencers have reportedly shared advice promising quick financial freedom, shaping how Malaysians handle their money.
These financial influencers, or “finfluencers,” have been offering money tips, investment opinions, and “wealth hacks” on social media for some time, without the rules that licensed professionals must follow.
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Malaysians could be fined up to RM10 million, up to 10 years in jail or both
In response to the growing presence of finfluencers, a new guideline on advertising capital market products and related services took effect on 1 November, according to local media.
The guideline states that while the Securities Commission Malaysia (SC) oversees the promotion of capital market products and services to Malaysians, content creators should be careful about what they share, as some activities may require a license or registration.
They added that failing to obtain the proper license or registration is a serious offence under the law, punishable by a fine of up to RM10 million, imprisonment for up to 10 years, or both.
“Think carefully before sharing your content. It could involve activities that require a license or registration from the SC,” the commission warned.
“Promoting crypto may require SC’s authorisation”
The SC also reminded that individuals should verify whether the company behind the product they are promoting is authorised by the SC. Failing to do so could mean unknowingly supporting scammers or unauthorised companies, which could lead to legal action.
“Make sure your content is clear, fair, and balanced, as false or misleading information can get you into trouble,” they added.
At the same time, posting, sharing, or promoting cryptocurrencies may require SC authorisation if you’re giving investment advice on them.
“Any trading platform promoting capital market products or services to Malaysians must have SC authorisation. Promoting scammers or unauthorised platforms could result in legal action for aiding or abetting illegal activities.”
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