Malaysia’s “Finfluencers” without proper license will be penalised

 

Malaysia is tightening the reins on financial influencers — or “finfluencers” — who dispense investment advice on social media without proper licensing. A newly revised guideline from the Securities Commission (SC) now treats them as voluntary advertisers under the law.

 

Same Rules, Higher Stakes

Under the updated guideline (effective Nov 1), finfluencers who promote capital-market products or services — like investment tips or financial planning — must be licensed by the SC. If they fail to register, they could face up to RM10 million in fines or 10 years in jail, or both.

 

Why The Crackdown Now?

Regulators are worried that unvetted online “gurus” may be spreading dangerously misleading or unsubstantiated advice. The Malaysian Financial Planning Council (MFPC) has previously warned that such influencers can have very real impacts on people’s finances — not just hype. MFPC leaders emphasise that giving financial advice comes with a “duty of care.”

 

Rules, But Not Just for “Sales Pitches”

Not all financial content is being targeted. The guideline clearly exempts purely educational content — as long as it doesn’t try to push people into making financial decisions or investments. Additionally, any financial promo must clearly disclose that it’s an advertisement.

 

How Finfluencers Can Stay Compliant

Finfluencers are encouraged to use the SC’s Investment Checker to ensure the companies they discuss are properly licensed. They should also follow the SC’s published infographic and checklist to understand what is allowed and how to avoid regulatory risk. All promotional messages must be clear, balanced, and not misleading, with full risk disclosures.

 

What Regulators Are Saying

Anuar Shuib from MFPC warns that unlicensed advice can “destroy wealth,” making regulation essential. Phang Kar Yew, also from MFPC, adds that the new rules are not about shutting voices down, but about raising the bar for credible, responsible financial communication.

That being said, will influencers in Malaysia be next in line? Ever since the pandemic, there has been a rise in them thanks to the usage of social media platforms. In China, influencers who wish to discuss finance, health, law and whatnot must require educational degrees under a new law to help curb misinformation.

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