[SIDE BAR] MFPC welcomes new SC rules, warns against unlicensed finfluencers

By SHYAFIQ DZULKIFLI

PETALING JAYA: The Malaysian Financial Planning Council (MFPC) has welcomed the Securities Commission’s (SC) revised Advertising Guidelines, saying the move marks an important initial step in addressing the growing influence of finfluencers and unregulated investment advice online.

MFPC president Andy Ng Yen Heng said professionalism and accountability were essential in maintaining trust in the financial system.

“Unlicensed advice erodes trust, but professionalism restores it. MFPC will continue raising the bar for ethical and responsible financial guidance to uphold the integrity of the profession and protect the public,” he said.

The council warned that misleading or unlicensed online advice could expose consumers to serious financial risks, particularly as such practices undermine consumer protection, professional standards, and overall market integrity.

MFPC said it supports clearer regulations that distinguish genuine financial education from regulated advice and ensure promoters are held accountable under the law.

The council said the revised guidelines, which took effect on Nov 1, 2025, bring finfluencers within the regulator’s scope and close regulatory gaps created by social-media-driven financial promotion.

The council said it has received both formal complaints and informal feedback from the public and its members regarding financial content shared by social media influencers that was inaccurate, incomplete or lacking proper disclosure.

It noted that such content often appeals to young or first-time investors, who may be drawn to “too good to be true” claims promising quick or guaranteed returns.

The speed and reach of social media, it said, could encourage impulsive decision-making before investors fully understand the risks involved.

Among the council’s key concerns is the lack of accountability when financial advice is given by unlicensed individuals. 

“Unlike licensed financial planners, who are bound by professional codes of ethics, continuing professional development requirements and disciplinary processes, unlicensed content creators do not offer comparable safeguards or recourse when advice leads to losses,” MFPC said.

However, MFPC said regulation alone was not enough. 

It called for stronger enforcement, closer cooperation between regulators and digital platforms, and broader investor education efforts to help the public distinguish between general financial education and regulated advice.

MFPC also encouraged consumers to verify the credentials of individuals offering financial guidance online.

It advised the public to treat posts that recommend specific investments or “hot tips” with extreme caution, and to regard social media content as a starting point for learning rather than a substitute for personalised financial advice.

Comments

Post a Comment

Popular posts from this blog

INTERACTIVE: Early warning signs of a landslide – here is what you need to look out for

Image
By SHYAFIQ DZULKIFLI     PETALING JAYA:   Cracks in walls or floors, blocked drains, and tilting utility poles or fences – these are among the early warning signs of a landslide that people living near slopes need to watch out for, said the Mineral and Geoscience Department.   The department’s director-general Datuk Zamri Ramli said other warning signs to look out for are water seeping from slopes, pooling water at the base of slopes, and visible cracks along their surface.   “Residents living near slopes should remain vigilant for these early warning signs of landslides, particularly during heavy downpours,” Zamri told The Star.   Parts of the country are currently experiencing heavy rain during the current northeast monsoon, raising the risk of landslides especially at high-risk slopes.   Critical slopes identified nationwide     Zamri said 254 critical slopes we...
Read more

INTERACTIVE: EV boom highlights charging bay shortage

Image
By SHYAFIQ DZULKIFLI   PETALING JAYA: A surge in electric vehicle (EV) sales is outpacing the growth in the number of charging stations being built. Malaysia’s vehicle-to-charger ratio currently stands at 13 EVs per charger nationwide, an increase of 18% compared to 11 a year ago. As of June 30, figures from the Malaysia Electric Vehicle Charging Network (MEVnet) dashboard show that there were 4,161 public EV charging bays across 1,374 locations nationwide. This is a 61% increase from The Star’s previous analysis in July 2024 when 2,585 bays were installed. Despite the increasing number of charging stations being built, EV registrations have been rising at an even faster pace. There are currently 52,418 EVs on the roads as of June 30 this year, with a sharp increase recorded since January. The first six months of this year saw 17,143 electrical vehicles registered, a 60.8% year-on-year jump from 10,663 units in ...
Read more

INTERACTIVE: A once-in-33-year Raya phenomenon

By SHYAFIQ DZULKIFLI   PETALING JAYA: Malaysia will experience a rare convergence of three major festivals eight years from now. In 2033, Hari Raya Aidilfitri, Chinese New Year and Christmas will fall close to each other, creating a joyful overlap of celebrations. This phenomenon occurs because Hari Raya Aidilfitri will be celebrated twice in 2033 – first in early January and again in December. The first Aidilfitri of 2033 will coincidentally fall in the same month as Chinese New Year (Jan 31). The second Aidilfitri of that year will occur close to Christmas (Dec 25). Aidilfitri will happen twice in 2033 due to the Islamic lunar-based calendar being approximately 11 to 12 days shorter than the solar-based Gregorian calendar. Over time, this difference results in Islamic celebrations shifting earlier each year. Once every 33 years, this shift aligns in such a way that Muslims observe two Aidilfitri celebrations within the same Gregoria...
Read more