THE Securities Commission Malaysia (SC) has today unveiled an updated version of its Guidelines on Advertising for Capital Market Products and Related Services to reflect evolving trends in advertising and promotional practices, both globally and domestically.
In a statement, the SC said this includes the growing influence of social media and the rise of financial influencers, commonly known as ‘finfluencers’.
“The revisions are designed to ensure responsible advertising within the capital markets, enhancing the protection of investors by introducing several key updates,” it said.
The SC highlighted that among the most significant changes are:
New Regulations for Finfluencers: The updated guidelines will now hold finfluencers —individuals who voluntarily engage in promotional activities for capital market products and services—accountable under the advertising framework.
Even if these influencers are not formally engaged as marketing agents by advertisers, they will still be considered as advertisers themselves and must adhere to the guidelines.
Stronger Oversight of Marketing Agents: Advertisers will now bear a greater responsibility for ensuring that the activities of their marketing agents comply with the guidelines.
If a marketing agent fails to meet the required standards, the advertiser will be held accountable for the breach.
Enhanced Social Media Requirements: In light of the increasing use of social media for financial promotions, the new guidelines place stricter requirements on advertising via these platforms to ensure that such promotions remain in line with regulatory expectations.
“The revised framework will also include a ban on advertising services in Malaysia by entities not authorised by the SC, further tightening the regulatory environment for financial promotions,” it said.
These updates are part of the SC's ongoing efforts to foster responsible advertising across emerging channels like social media while safeguarding investor interests.
In developing the revised guidelines, the SC has taken into account global best practices, benchmarking against regulatory frameworks from countries such as Australia, the United Kingdom, and Singapore.
Additionally, the Commission has engaged with stakeholders, including finfluencers, to ensure that the guidelines effectively address the changing landscape of capital market advertising.
The revised guidelines will come into force on 1 November 2025, providing advertisers ample time to adjust their practices and comply with the new requirements, the SC added. – March 27, 2025
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