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SC Issues cease and desist order to seven unlicensed operators offering investment advice

Source: https://www.sc.com.my/resources/media/media-release/sc-issues-cease-and-desist-order-to-seven-unlicensed-operators-offering-investment-advice

The Securities Commission Malaysia (SC) had to date, following the issuance of the Guidance Note on Provision of Investment Advice on 30 December 2020, directed seven operators, comprising entities and related individuals, to cease and desist from undertaking all activities in relation to unlicensed investment advice. Providing investment advice is a regulated activity that requires a licence under the Capital Markets and Services Act 2007 (CMSA). Any person carrying on a business of giving investment advice without a licence commits an offence under the CMSA which is punishable with a fine not exceeding RM10 million or imprisonment not exceeding ten years, or both.
The cease and desist orders were issued following the SC’s findings that these operators are carrying out the business of advising others concerning securities or derivatives, including providing stock recommendations upon payment of a fee. These activities are usually carried out in subscription-based private chat groups on Telegram, Whatsapp and Facebook.

The seven unlicensed operators and advisers are as follows

  1. Don Trader / DT Academy Sdn Bhd
  2. Engineer Saham / Ergonamos Marketing
    – Mohd Faizal Bin Raihan
  3. Felix Consulting
  4. Lifestyle Trading Masterclass / LTM Tech
    – Jeremy Looi Chee Keong
  5. One Stock Centre / Stock Advisor / The SuperInvestor / SA Expert Consultancy
    – Logeswaran A/L Balasubramaniam
  6. Serikandi Saham / Thoriq Legacy Sdn Bhd
    – Fatin Fatini Binti Ismadi
  7. Teknik Saham
    – Fazlisyam Bin Md Isa

The SC has also placed all of the above operators with their relevant details in the SC’s Investor Alert List http://www.sc.com.my/investor-alert

The SC also warns the operators of other online webinars, seminars, social media, and messaging applications chat rooms to cease carrying out unlicensed investment advice activities. The SC is monitoring this closely and will, where appropriate, take action against those who breach securities laws.

The public are also urged to report to the SC if they have been approached by unlicensed persons offering capital investment advice at [email protected] or call +603-6204 8999.

While the SC carries out pro-active internet surveillance to stem illegal capital market activities perpetrated through social media, the public are also reminded to be vigilant and be cautious of the risks of participating in any investment schemes, as they could be defrauded or used as part of a market manipulation scheme.

Investors should verify the licence or registration of individuals, companies and platforms offering capital market services or products, before making any investment decision. This includes the provision of investment advice. Checks can be done through the SC website via the Public Register of Licence Holders www.sc.com.my/licensed-registered-persons and List of Registered Recognised Market Operators www.sc.com.my/rmo.

Index warrants regain focus with global market developments

macquarie structured warrants 20200914

Last week, the Malaysian warrants market saw a dip in turnover to RM295.4mil, 29.8% lower from the previous week, led by a decline in turnover for warrants over Malaysian shares with its turnover falling 33.6% week-on-week (w-o-w). Investors shifted their focus to the index warrants, some of which experienced lesser declines w-o-w, namely warrants over the Hang Seng Index (HSI), S&P 500® Index and the iShares A50 China ETF. Index warrants took up 41.9% of warrants turnover last week, an increase from 38.6% in the previous week.

The HSI gained for four straight days last week to close at 29,405.7 on Thursday, before losing most of its gains for the week on Friday as the overnight slide in US technology stocks weighed on Asian markets, to finish the week at 28,990.9, a slight 0.9% higher w-o-w. The HSI futures made similar moves, finishing the week at 28,934, up 0.8% w-o-w. Put warrant HSI-HGK and call warrant HSI-CFK swapped places on the top warrants list but once again had the highest volumes traded at 167.8mil and 122.8mil units, respectively. On Friday alone, as the HSI futures slumped 1.5%, bullish investors net bought 10.2mil units of call warrant HSI-CFK and took profit on 19.9mil units of put warrant HSI-HGK.

Meanwhile, the Hang Seng TECH Index (HSTECH) futures had a more volatile week as it fell 1.9% on Monday then rose 5.2% over the next 3 days before closing 1.9% lower to 8,498 on Friday, culminating in a 1.2% gain w-o-w. Call warrant HSTECH-C1 was the top traded HSTECH warrant with 18.4mil units traded. Investors may capture movements in the Chinese technology stocks through warrants over the HSTECH. Whether bullish or bearish, investors may capture trading opportunities with both call and put warrants available.

On the local front, call warrant AIRASIA-C1J placed third again last week with 60.3mil units traded as the shares of AirAsia Group rose 3.5% w-o-w to finish the week at RM1.19, marking another week of gains as movement control order restrictions are gradually being lifted around the country. Other than that, call warrants SUPERMX-C1I and DSONIC-C30 also made the top 5 most active list.

Top warrants by volume traded:

Warrant nameVolume
(’mil.)
IssuerExercise level/priceExpiry date
HSI-HGK167.8Macquarie27,00028 May 2021
HSI-CFK122.8Macquarie31,00029 Jun 2021
AIRASIA-C1J60.3Kenanga0.8026 Apr 2021
SUPERMX-C1I36.3Kenanga14.0026 Jul 2021
DSONIC-C3031.9Ambank0.5822 Jul 2021

If you have any questions or need further assistance, please do not hesitate to contact us via our hotline at 03-2059 8840 or email us at [email protected]

To view the full list of structured warrants available on Bursa Malaysia, kindly visit malaysiawarrants.com.my

Provided for Malaysian residents information only. This commentary has not been reviewed by the Securities Commission Malaysia. It is not an offer or recommendation to trade and is not research material. Past performance is not indicative of future performance. You should make your own assessment and seek professional advice. The Warrants will not be offered to any US persons.

22-03-2021-m-online