KUALA LUMPUR – Securities Commission Malaysia (SC) has directed seven operators, comprising entities and individuals, to cease and desist from undertaking activities in relation to unlicensed investment advice.
The regulator, in a statement today, said it found that these operators have been carrying out the business of advising others on securities or derivatives, including providing stock recommendations, upon the payment of a fee.
“These activities are usually carried out in subscription-based private groups on Telegram, WhatsApp and Facebook.”
It said providing investment advice is a regulated activity that requires a licence under the Capital Markets and Services Act 2007 (CMSA).
“Any person conducting the business of giving investment advice without a licence has committed an offence under CMSA, which is punishable with a fine not exceeding RM10 million, or imprisonment not exceeding 10 years, or both.”
The seven operators are Don Trader/DT Academy Sdn Bhd; Engineer Saham/Ergonamos Marketing – Mohd Faizal Bin Raihan; Felix Consulting; Lifestyle Trading Masterclass/LTM Tech – Jeremy Looi Chee Keong; One Stock Centre/Stock Adviser/The SuperInvestor /SA Expert Consultancy – Logeswaran Balasubramaniam; Serikandi Saham/Thoriq Legacy Sdn Bhd – Fatin Fatini Ismad; and, Teknik Saham – Fazlisyam Md Isa.
SC warned operators of other webinars, seminars, and social media and messaging app chat rooms to stop conducting such activities if they are unlicensed.
“SC is monitoring this closely, and will, where appropriate, take action against those who breach securities laws.”
It urged people to file a report if they have been approached by unlicensed individuals offering capital investment advice, at [email protected] or +603-6204-8999.
“While SC carries out proactive internet surveillance to stem illegal capital market activities perpetrated through social media, the public is also reminded to be vigilant and cautious of the risks of participating in any investment scheme, as they could be subjected to fraud or used as part of a market manipulation scheme.”
Investors should first verify the licence or registration information of individuals, companies and platforms offering capital market services or products, it said.
“This includes the provision of investment advice.”
Checks can be done at the SC website. – Bernama, March 22, 2021
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