KUALA LUMPUR: The Securities Commission (SC) today cautioned the public about a new investment scam involving fake Information Memorandums (IMs) that falsely claim to be lodged with or endorsed by the regulator.
The SC stated that under the Capital Markets and Services Act 2007 (CMSA), unlisted public companies issuing IMs to raise funds are required to lodge them with the commission within seven days of issuance to potential investors.
However, the lodgement of an IM does not constitute an endorsement by the SC, it said.
"In this case, the SC found that the company represented to investors that it had issued an IM purportedly lodged with the SC, thus misleading investors and lending credibility to its investment scheme.
"The SC confirms that the company did not lodge any IM with the SC and suspects that it is part of an investment scam,” it said.
The SC reported that immediate action has been taken, including filing a police report and adding the company to its Investor Alert List at https://www.sc.com.my/investor-alert-list .
The commission emphasised that it views this matter seriously, as such an act might lead the public to believe that the SC endorses and approves the investment product.
"The public is strongly encouraged to verify any claims using the name of the SC or any of its officers and to report such claims as well as any suspicious activities or investment information to the SC.
"This will help protect investors from potential risks and assist them in making informed investment decisions,” it added. - Bernama
