Finfluencers Will Be Classified As Advertisers From Nov 1

The Securities Commission Malaysia (SC) has released a statement relating to financial influencers who promote investment and stock tips on social media.

Basically, the SC has revised the Guidelines on Advertising for Capital Market Products and Related Services to include this category of advertising.

The SC stated that this is to take “into account advertising and promotional trends globally and domestically, including the growing prominence of social media and financial influencers (finfluencers)”.

Finfluencers will be considered capital market advertisers

This move is aimed at ensuring responsible advertising activities in relation to capital market products and services.

Following is the revised framework details provided by the SC:

• new requirements relating to finfluencers who are not engaged as marketing agents by an advertiser yet on their own accord undertake advertising activities for any capital market products and services. They will be subject to the requirements under the Guidelines as they would be regarded as advertisers for the purposes of the Guidelines;
• enhancement of requirements relating to advertisers’ duty to ensure the advertising activities conducted by their marketing agent comply with the Guidelines. The advertisers will otherwise be held accountable for the conduct of their marketing agent; and
• enhancement of requirements relating to use of social media to address its growing use for financial promotions.

Guideline effective from Nov 2025

According to the SC, the revised Guidelines will come into effect on 1 November 2025. This is to allow sufficient time for advertisers to familiarise and make the necessary preparations to meet the new requirements.

Last year, the SC had issued a guideline informing finfluencers that promotion of unlicensed financial products and services in Malaysia is an offence. This offence is punishable under the Capital Markets and Services Act 2007 (CMSA). A person found guilty can be slapped with a fine not exceeding RM10 million or imprisonment not exceeding ten years or both.

Any clarification and guidance relating to the revised Guidelines may be submitted to AdGuidelines@seccom.com.my.

The revised Guidelines can be downloaded together with its revised FAQs at https://www.sc.com.my/regulation/guidelines/advertising-and-promotion.