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March 22, 2021

7 Entities Receive SC Warnings

 The Securities Commission Malaysia (SC) has directed seven operators comprising relevant entities and individuals to cease and terminate all activities related to unlicensed investment advice.


The regulator said the stop and avoidance order was issued following the SC's observation that the operator was in the business of advising on securities or derivatives including providing investment recommendations for shares after payment had been made.


The seven unlicensed operators and advisors are Don Trader / DT Academy Sdn Bhd; Stock Engineer / Ergonamos Marketing - Mohd Faizal Bin Raihan; Felix Consulting; Lifestyle Trading Masterclass / LTM Tech - Jeremy Looi Chee Keong; One Stock Center / Stock Advisor / The SuperInvestor / SA Expert Consultancy - Logeswaran Balasubramaniam; Serikandi Saham / Thoriq Legacy Sdn Bhd - Fatin Fatini Ismad and Stock Techniques - Fazlisyam Md Isa.


"This activity is usually carried out in a subscription -based private chat group via Telegram, Whatsapp and Facebook," he said in a statement today as quoted by Bernama.


According to the SC, providing investment advice is a regulated activity that requires a license under the Capital Markets and Services Act 2007 (CMSA).


"Any individual who conducts a business that provides investment advice without a license commits an offense under the CMSA which is punishable by a fine not exceeding RM10 million or imprisonment not exceeding 10 years or both," he explained.



Meanwhile, the SC also warned operators of webinars, seminars, online social media and other messaging application chat rooms to stop conducting investment advisory activities without a license.


"The SC is closely monitoring this matter and if necessary, we will take action against those who violate securities laws," he said.


The regulator also urged the public to report to the SC if they are contacted by unlicensed individuals offering capital investment advice at [email protected] or call +603-6204 8999.


“While the SC proactively conducts internet monitoring to curb illegal activities in the illicit capital market conducted through social media, the public is also reminded to be vigilant and wary of the risk of participating in any investment scheme as they can be deceived or used as part of a market manipulation scheme, ”according to the SC.


The SC said investors should verify the licenses or registrations of individuals, companies and platforms offering capital market services or products before making any investment decision.


"This includes giving investment advice," he explained.


According to the SC, the review can be done through the SC website at the General Register of Licensees, www.sc.com.my/licensed-registered-persons and the List of recognized Recognized Market Operators, www.sc.com.my/rmo.