KUALA LUMPUR: Those looking for advice on investment planning are encouraged to consult financial advisers who are recognised and approved by the authorities.
Finance Minister II Datuk Seri Amir Hamzah Azizan (pic) said the government has in place several agencies, such as Bank Negara and the Securities Commission (SC), to validate financial advisers.
“We encourage the rakyat to seek financial advisers who are recognised by Bank Negara or the SC.
“But ultimately, it is up to the person himself to understand what (advice) is provided and to always cross-check.
“The reality is that the government cannot regulate everything. So, we encourage the public to go to verified sources,” he said at an event here yesterday when asked about the rising trend of financial influencers, or “finfluencers”, who share financial tips and insights on social media.
In July last year, the SC issued updated guidelines for financial influencers to address their growing popularity.
Among the guidelines is a requirement that those promoting capital market products and services on social media must obtain a licence.
The SC also said financial influencers should verify that the companies they promote are licensed or approved by the SC through its investment checker.
Federation of Malaysian Consumers Associations (Fomca) legal adviser Datuk Indrani Thuraisingham said the rise of financial influencers has presented new challenges because there is currently no specific legislation in the country that directly addresses their activities.
“This regulatory gap raises concerns about accountability and the potential spread of misleading or unverified financial information,” she said in an interview.
In Malaysia, said Indrani, matters relating to the provision of financial advice are primarily governed by the Capital Markets and Services Act 2007 and the Financial Services Act 2013.
Under these laws, individuals or entities offering financial advisory services must obtain the necessary licences from regulatory bodies such as the SC and Bank Negara. Malaysia should adopt best practices from other jurisdictions to ensure accountability and protect consumers from misinformation online, she said.
Indrani added that Fomca has received complaints about these so-called trainers who provided unsatisfactory training on how to do foreign currency trading.
“The government needs to establish clear definitions on what constitutes financial advice, and delineating the boundaries for finfluencers can help in distinguishing between general financial education and specific advisory services,” said Indrani.
“This would ensure that only qualified individuals offer financial guidance, thus maintaining the integrity of financial advisory services.”
She also proposed that the authorities collaborate and engage with social media platforms to monitor and regulate financial content to curb the spread misleading information.
“Platforms can be encouraged to enforce policies that require disclosure of credentials by finfluencers and flag unverified financial advice.
“Another measure is to implement programmes to educate the public on the risks associate with seeking unregulated financial advice.
“Awareness campaigns can highlight the importance of seeking advice from licensed professionals and to recognise potential red flags in online financial content,” Indrani said.
