KUALA LUMPUR, July 20 — ‘Finfluencers’ or financial influencers are facing increased scrutiny from governments worldwide.

On July 18, the Securities Commission Malaysia (SC) updated its guidelines on investment advice due to the rising popularity of ‘finfluencers’.

The SC is the regulator for capital markets in Malaysia, which covers investment products ranging from unit trusts all the way to cryptocurrencies.

What is a ‘finfluencer’?

A ‘finfluencer’ is a content creator who posts financial insights and recommendations online through videos or graphics.

They can post on platforms like YouTube, Instagram, or TikTok, sharing tips about investing in crypto, saving for retirement, or buying property.

While some recommend legitimate companies, others promote unlicensed capital market products and services.

In some cases, ‘finfluencers’ have persuaded followers to buy into financial scams and illegal services.

This has led to global regulations on the type of content ‘finfluencers’ are allowed to post.

These regulations do not just apply to ‘finfluencers’; anyone that is thinking of sharing investment opportunities will need to comply with the new guidelines from the SC.

What does this mean for those posting financial advice?

• Ask if their posts qualify as financial advice by reviewing the Guidance Notes and Guiding Principles from the SC here.
• Be wary and verify if the company they promote is authorised by the SC.
• Check to ensure their content complies with the SC’s Advertising and Promotion guidelines.

The SC also cautioned content creators to check if the products and services they promote are licensed or registered.

This means that any trading platform promoting capital market products and services will require authorisation from the SC in order to be promoted by ‘finfluencers’.

What happens if you engage in unauthorised activity?

Promoting financial products and services without a licence or registration is a criminal offence.

Offenders can be fined up to RM10 million, imprisoned up to 10 years, or both upon conviction.

The SC also advised ‘finfluencers’ to use the Investment Checker to see if the companies they promote are licensed or approved.

Additionally, the SC said that content should be "clear, fair, and balanced”, and any misleading content can result in legal action.

For more information on the SC’s new guidelines, visit the SC’s website here.