Malaysia Implements New Rules for Financial Influencers: Unlicensed Investment Advice Can Lead to RM10 Million Fine

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Malaysia’s New Rules for Financial Influencers: Unlicensed Advice Can Lead to RM10,000,000 Fine or 10 Years’ Jail

Starting 1 November 2025, the Securities Commission Malaysia (SC) will enforce updated guidelines regulating financial content, investment advice, and capital market promotions on social media. Under the new rules, any influencer, content creator, or KOL who shares investment recommendations, financial planning advice, or promotes capital market products must hold the appropriate license.

Failing to comply may result in:

  • 💰 Fines up to RM10,000,000

  • 🚔 Up to 10 years’ imprisonment

  • ⚖️ Or both penalties applied simultaneously

This marks one of Malaysia’s strongest regulatory actions aimed at improving the quality, safety, and reliability of online financial content.

Why Is SC Tightening Regulations on Financial Content?

In recent years, financial influencers have gained massive audiences across TikTok, Instagram, YouTube, Facebook, and X. While many creators publish genuine educational content, regulators found an increasing number of issues among unlicensed creators:

1. Misleading investment recommendations

Some influencers promote high-risk products without proper risk disclosures, leading followers to make poor financial decisions.

2. Promotion of illegal or unregulated schemes

Unlicensed creators may unknowingly (or knowingly) promote:

  • Illegal investment schemes

  • Unlicensed fund management

  • Unregulated crypto projects

  • Ponzi-style products

3. Lack of investor protection

The general public may not have the financial literacy to differentiate between credible advice and misleading content, resulting in significant losses.

The Malaysian Financial Planning Council (MFPC) emphasises that financial advice is a professional activity, and content creators must take responsibility for the impact of their guidance.

What Type of Content Requires a License?

Under the updated SC guidelines, content is divided into two categories: educational content and regulated financial advice.

✔ Content That Does NOT Require a License

The following is allowed without licensing:

  • General financial education

  • Basic explanations of economic terms

  • Financial literacy content

  • Non-promotional personal finance tips

  • Informative content without calls to action

❗ Content That DOES Require a License

A license is mandatory when influencers:

  • Promote or recommend financial products

  • Provide investment advice or specific buy/sell suggestions

  • Guide audience decision-making on stocks, funds, crypto, or capital market instruments

  • Highlight features of regulated investment products with intent to persuade

📌 Sponsored Content Rule

If content is promotional, it must be clearly labelled as an advertisement to avoid misleading the audience.

How Influencers Can Stay Compliant

The SC has introduced several tools and guidelines to help influencers and marketers maintain compliance.

1. Check Licensing Status via SC Investment Checker

Influencers should verify whether a company, fund, or product they promote is licensed or approved by the SC. This reduces the risk of unintentionally endorsing illegal products.

2. Follow SC’s Official Content Guidelines

The SC provides clear requirements on:

  • Disclosure format

  • Risk warnings

  • Advertisement labelling

  • Do’s & Don’ts for financial promotions

3. Ensure Content Is Clear, Neutral, and Not Misleading

Regulations require creators to present:

  • Balanced information

  • Accurate data

  • Clear disclaimers

  • Transparent risk statements

4. Consider Professional Training or Partnerships

Working with licensed institutions or obtaining proper certification elevates credibility and legal safety for long-term content creation.

What Does This Mean for Influencers and the Public?

For Influencers

The SC’s updated rules aim to eliminate misinformation while creating a more professional environment for financial creators. Those who comply stand to benefit from:

  • Higher credibility

  • Stronger brand partnerships

  • Better audience trust

  • Opportunities for licensed collaboration

For the Public

These rules ensure audiences receive:

  • Safer and more reliable financial information

  • Less exposure to scams or illegal schemes

  • Better protection when making financial decisions

The MFPC clarifies that the regulation is not meant to “ban influencers”, but to protect Malaysians and encourage responsible financial communication.

Conclusion

The updated SC guidelines represent a major shift for Malaysia’s financial content landscape. From 1 November 2025 onward, influencers who share investment advice, financial planning guidance, or capital market promotions must obtain the appropriate license—failing which they risk up to RM10,000,000 in fines and 10 years’ imprisonment.

The objective is not to suppress creators but to strengthen trust, protect investors, and ensure that financial content shared online is professional, accurate, and safe. As financial literacy continues to grow in Malaysia, responsible content creation will play a vital role in shaping the future of public financial awareness.

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