Financial influencers, or “finfluencers”, have become a familiar presence across Malaysian social media. Their short videos and reels simplify money topics such as budgeting, investing, credit cards, and personal finance. In many cases, their content spreads faster and reaches more viewers than traditional financial advice from licensed professionals.

With this influence, however, comes growing concern. Many finfluencers have been sharing financial tips, investment opinions, and wealth strategies without the safeguards that apply to licensed practitioners, even when their advice can significantly affect a person’s financial well-being.

Revised Guideline For Capital Market Advertising Now In Force

To address these concerns, an updated guideline governing the advertisement of capital market products and related services came into effect on 1 November. Capital market products include investment instruments such as shares, unit trusts, and bonds, which are bought and sold by investors to grow their wealth or generate returns. The guideline, issued by the Securities Commission Malaysia (SC), updates the original 2020 framework and aims to ensure that individuals who share investment-related content are held to consistent standards.

The revised rules acknowledge the growing influence of content creators and the rapid spread of personal finance information online. They also make clear that those who promote or influence decisions relating to capital market products may fall under regulatory requirements designed to protect consumers.

Industry Concerns Over Unregulated Advice

Malaysian Financial Planning Council (MFPC) International Development Committee chairman Anuar Shuib said that before the guideline took effect, many self-styled financial “gurus” had been sharing unverified or incomplete information. Speaking at a financial literacy panel in Kuala Lumpur, he emphasised that financial content cannot be treated as mere entertainment, as it has the potential to lift someone up, bring them down, or even cause lasting financial harm.

He noted that regulatory safeguards such as licensing and registration under the Capital Markets and Services Act are essential to ensure accountability among individuals who share advice that may influence financial decisions.

Finfluencers Treated As Voluntary Advertisers

Under the revised guideline, finfluencers are regarded as voluntary advertisers. This means they are not allowed to promote capital market products or related services, including financial planning, unless they are licensed by the SC. Unauthorised promotion of such products can amount to a breach of securities laws.

Those who share content that requires SC authorisation without the appropriate licence may face severe penalties. The law provides for fines of up to RM10 million, imprisonment for up to 10 years, or both. The guideline also highlights the importance of verifying whether a company is authorised before featuring or endorsing it, as promoting unauthorised entities may amount to aiding or abetting illegal activity.

It further requires that all content be clear, fair, and balanced. Misleading, confusing, or false information may result in regulatory action.

Consumers Should Verify Before Acting On Advice

While Malaysians remain free to follow any content they choose, Anuar advised consumers to take a moment to check whether a finfluencer is authorised by the SC before acting on any recommendations. He explained that is often shaped by an individual’s income, obligations, goals, and risk tolerance, which means advice that appears helpful to one person may be unsuitable for someone else. A creator’s confidence or popularity does not guarantee that their guidance fits a viewer’s situation.

Phang added that the goal of the guideline is not to restrict financial education or discourage people from learning online. Instead, it ensures that content encouraging investment decisions comes from sources that are trained, accountable, and legally recognised. He noted that licensed individuals have specific duties under securities law, including the responsibility to avoid giving advice that could mislead or put consumers at risk.

For consumers, this means paying attention to how information is presented. Content that promises quick profits, highlights unusually high returns, or downplays risks should be approached carefully. Phang stressed that checking whether a creator or platform is authorised helps consumers avoid situations where decisions are made based on incomplete or unverified information. He also encouraged the public to rely on more than one source when researching financial products, as this can provide a clearer picture of the risks involved.

Together, these points underline a simple message: financial content can be useful, but verifying its source and understanding one’s own financial circumstances are essential steps before acting on anyone’s advice.

Educational Content Remains Permitted

The SC clarified that sharing factual information for educational purposes remains permitted. Creators may discuss how certain products work, as long as the content is not designed to push viewers toward taking a specific action or position.

The guideline also requires advertisements to be clearly identified, so that consumers can distinguish paid promotions from educational content or personal commentary. This helps ensure transparency and reduces the risk of consumers misunderstanding the intent behind a post or video.

A Move Toward A Healthier Digital Financial Ecosystem

Phang said the MFPC supports the guideline, as it promotes industry-wide responsibility and encourages higher standards among those who share financial information online. He noted that clearer rules help protect consumers and create a healthier financial ecosystem, especially as more Malaysians rely on digital content to guide their financial decisions.

The updated framework marks an important step in ensuring that financial information shared online is accurate, responsible, and backed by safeguards that protect the public.

Advertising Rules for Capital Market Products Under the New Guideline

The revised Guidelines on Advertising for Capital Market Products and Related Services [PDF] set clearer rules for how capital market products may be promoted across all media, including social platforms. The guideline states that advertisements must give information that is clear, relevant, and balanced, and must not mislead or create unrealistic expectations.

These rules apply to printed, digital, electronic, and social media content. Advertisements must be easy to recognise as advertisements, so viewers can tell when a post is sponsored rather than educational or personal opinion. The SC also states that advertisers should not take advantage of people’s limited financial knowledge or emotional reactions, as this can cause consumers to misunderstand risks.

The guideline prohibits promoting any capital market product or service from an unauthorised or unlicensed party. If fees or charges are mentioned, they must be explained in a way that helps consumers understand how those costs affect returns. Claims cannot be exaggerated, and benefits cannot be presented without proper context.

Advertisers who work with third-party promoters, including finfluencers, must ensure that the content shared on their behalf is accurate and compliant. If an influencer is paid or given benefits, this must be clearly disclosed.

Together, these expectations aim to keep capital market advertising fair and transparent, and to ensure that promotions do not mislead consumers.

When Financial Content Becomes Investment Advice

The SC’s Guidance Note on the Provision of Investment Advice [PDF] explains when online financial content is considered regulated investment advice under the Capital Markets and Services Act 2007. A person must hold a licence if they advise others on securities or derivatives, either directly or through analyses or reports produced as part of a business.

According to the Guidance Note, content may be viewed as investment advice if it includes a view or recommendation that could influence someone to buy, sell, or hold an investment. This applies even when the creator sees the content as general commentary. Mentioning specific products, predicting outcomes, or encouraging viewers to take a position may place the content within regulated territory. Disclaimers such as “not financial advice” do not change this if the message encourages action.

To determine whether someone is running a business, the SC looks at the full context. Posting financial content regularly, following a content schedule, or earning money from views, referrals, or paid groups may show that the creator is operating commercially and therefore needs a licence.

Conduct Rules and Responsibilities Under Securities Law

The Guidance Note also describes conduct that is prohibited for all creators, whether licensed or not. Making statements that are false, misleading, or careless, if those statements influence investment decisions, is an offence. Content that manipulates market expectations or creates a wrong impression of price movements is also not allowed. These offences carry heavy penalties, including imprisonment of up to ten years and a minimum fine of RM1 million.

Licensed representatives must follow even stricter standards. They must ensure their public statements are accurate and balanced, and they cannot promise guaranteed returns unless such guarantees truly exist. They are also not allowed to run financial workshops or training on their own unless these activities fall within their licensed role.

The SC states that educational content is still permitted. Creators may explain financial concepts or product features as long as the content is not intended, and is unlikely, to influence someone to make a specific investment decision. This helps support financial literacy while keeping regulated advice within licensed channels.

The commission also encourages both consumers and creators to check whether a company or platform is authorised, especially when content highlights trading platforms, investment schemes, or products that appear to offer unusually high returns. Featuring or promoting unauthorised entities may expose creators to enforcement action, and verifying legitimacy is an important step in protecting the public from potential risks.

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