Through the guideline update, the SC reminds influencers, especially those focused on finance, to have relevant approvals to promote capital market products on social media. This is because promoting capital market products requires a license from the SC in certain circumstances, especially those that lead to trading activities.
In addition, promoting financial insights and recommendations in certain capital market products to followers on social media, with the expectation of receiving rewards in the form of commissions or affiliate rewards, requires a license from the SC. Engaging in this activity without a license is an offence, and punishable under the Capital Markets & Services Act 2007 (CMSA). Those found guilty can be fined not more than RM10 million, jailed not more than 10 years, or both.
Moreover, the updated guidelines also touch on even sharing the satisfaction of investing in a capital market on social media – which leads to other people buying, or selling. If the matter leads to profit or compensation, including affiliate marketing, then it requires a license from the SC. Additionally, influencers who promote unlicensed online stock trading platforms can be prosecuted for aiding or abetting illegal activities.
If you share various things on social media, especially those related to finance, you might want to check the new guidelines published by the SC regarding this matter.
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