KUALA LUMPUR – The Securities Commission Malaysia (SC) had to date, following the issuance of the Guidance Note on Provision of Investment Advice on 30 December 2020, directed seven operators, comprising entities and related individuals, to cease undertaking all activities to unlicensed investment advice.
Providing investment advice is a regulated activity that requires a licence under the Capital Markets and Services Act 2007 (CMSA). Any person carrying on a business of giving investment advice without a licence commits an offence under the CMSA which is punishable with a fine not exceeding RM10 million or imprisonment not exceeding ten years, or both.
The cease and desist orders were issued following the SC’s findings that these operators are carrying out the business of advising others concerning securities or derivatives, including providing stock recommendations upon payment of a fee.
These activities are usually carried out in subscription-based private chat groups on Telegram, Whatsapp and Facebook.
The seven unlicensed operators and advisers are as follows
- 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 Advisor / The SuperInvestor / SA Expert Consultancy
– Logeswaran A/L Balasubramaniam
- Serikandi Saham / Thoriq Legacy Sdn Bhd
– Fatin Fatini Binti Ismadi
- Teknik Saham
– Fazlisyam Bin Md Isa
The SC also warns the operators of other online webinars, seminars, social media, and messaging applications chat rooms to cease carrying out unlicensed investment advice activities. The SC is monitoring this closely and will, where appropriate, take action against those who breach securities laws.
While the SC carries out pro-active internet surveillance to stem illegal capital market activities perpetrated through social media, the public is also reminded to be vigilant and be cautious of the risks of participating in any investment schemes, as they could be defrauded or used as part of a market manipulation scheme.