Securities Commission Malaysia revises Guidelines on Advertising for Capital Market Products and Related Services

04 April 2025

1. promotional activities are now included as a form of advertisement under paragraph 2.03 of the Revised Guidelines, resulting in the removal of the phrase from other paragraphs of the Revised Guidelines;

2. the exclusion of “disclosure document”[2] from being regarded as an advertisement has been moved from the definition of “advertisement” in paragraph 4.01 of the Superseded Guidelines to a new paragraph 2.02 of the Revised Guidelines; and

3. a new Guidance to paragraph 2.01 of the Revised Guidelines now clarifies that the guidelines do not apply to the dissemination of factual information relating to a capital market product intended solely for education purpose, provided that such information is not a recommendation, advice or opinion that has the effect of inducing, or is likely to induce, a person to take any action or position (e.g. buy, sell or hold) with respect to the product. Thus, the Revised Guidelines do not apply to training providers, lecturers or teachers who share factual information that fall within the aforementioned parameters.

1. the categories “a person carrying out regulated activity” and “a person who provides a capital market service” in sub-paragraphs (b) and (c) respectively of the said definition in the Superseded Guidelines have been replaced by a new definition “capital market intermediary” which is more precise;

2. the category “any other person specified in these Guidelines as issuing or authorising an advertisement or a promotional activity for the purposes of these Guidelines” in sub-paragraph (e) of the said definition in the Superseded Guidelines has been deleted to avoid uncertainty; and

3. a new sub-paragraph (d) has been introduced into the definition of “advertiser” in the Revised Guidelines to include as an advertiser, “a person who is not engaged by any of the persons referred to under paragraphs (a) to (c) and who on his own accord issues or authorises such advertisement (voluntary advertiser).”

1. to ensure that the advertisement provides clear, relevant and balanced information regarding the product or service[3], and in so far as is reasonably practicable, that the information in the advertisement is current and accurate[4] (paragraph 5.01);

2. to ensure that the advertisement does not contain any messaging that is likely to mislead or deceive an investor, such as an exaggerated, flamboyant, overstated, or over-zealous messaging[5] (paragraph 5.02);

3. to ensure that investors are treated fairly at all times - an advertiser must not attempt to exploit an investor’s vulnerability including his behavioural traits, financial status, lack of expertise, experience or knowledge[6] (paragraph 5.03);

4. to ensure that its advertisements are fit for its investors, having due regard to the vulnerable segment of the investors such as the elderly or person with disability, and can be easily understood by the investors[7] (paragraph 5.04);

5. to ensure advertisements are presented in a manner that allows the intended target audience to immediately identify it as an advertisement[8] (paragraph 5.05); and

6. to not issue or authorise any advertisement relating to a capital market-related service offered by a person that is not licensed, registered or otherwise authorised by the SC[9] (paragraph 5.06).

1. effective control, policies and procedures (“CPP”) are in place to ensure compliance with the Revised Guidelines[10] (paragraph 6.01); and

2. the CPP are observed and reviewed on a regular basis to ensure the CPP remain relevant and effective[11].

1. the advertiser is to remain responsible for the third-party provider’s conduct in relation to the advertisement (paragraph 7.01); and

2. the advertiser must: (a) ensure the third-party provider complies with the Revised Guidelines; and (b) have effective oversight over the third-party provider and the advertisement carried out by the latter (paragraph 7.02).

1. For a product or service intended to be made available to a particular group of investors, an advertiser must clearly indicate that the advertisement is only intended for the particular group of investors and must use its best endeavours to ensure that the advertisement is only accessed by the particular group of investors[12] (paragraph 8.01);

2. An advertiser must ensure that the content of advertisements is consistent with: (a) the information contained in a disclosure document; or (b) the terms or conditions set out in any relevant agreement or contract provided to an investor in relation to the product or service[13] (paragraph 8.02);

3. An advertiser, where relevant, must ensure advertisements direct investors to refer to the disclosure document or any relevant agreement or contract; in this regard, the advertisement must state where the disclosure document can be accessed and the issuance date of the disclosure document[14] (paragraph 8.03);

4. An advertiser, where relevant, must ensure the disclosure document or any relevant agreement or contract is readily available and easily accessible[15] (paragraph 8.04);

5. An advertiser must ensure that any testimonial or endorsement included in an advertisement is by a person who has invested in the advertised product or has used the advertised service, and it must be accompanied with a statement stating whether such person is being compensated in any manner by the advertiser[16] (paragraph 8.05);

6. A voluntary advertiser and any third-party provider engaged by an advertiser, must disclose in the advertisement any direct or indirect benefits they may receive or have received in relation to the advertisement[17] (paragraph 8.06);

7. An advertiser must take the necessary steps to ensure that its third-party provider complies with the requirements in paragraph 8.06 of the Revised Guidelines[18] (paragraph 8.07);

8. Where the principal sum or rate of returns from investment in a product is not guaranteed, an advertiser must ensure that the advertisement does not state that: (a) the risk of investors losing their principal sum invested is low or nil; or (b) the risk of investors not achieving the stated, target or expected rate of returns is low or nil[19] (paragraph 8.08);

9. Where returns are referred to in an advertisement, an advertiser must: (a) ensure that the returns stated are net of relevant fees, charges or costs; and (b) clarify the effect that the relevant fees, charges or costs may have on the returns and is not hidden or presented in a manner that is difficult to understand[20] (paragraph 8.09);

10. Where the returns are stated in foreign currency, it must be highlighted to the investors[21] (paragraph 8.10);

11. Where fees, charges or costs are referred to in an advertisement, an advertiser must ensure that the advertisement: (a) gives an accurate representation of the overall level of fees, charges or costs an investor is likely to pay; (b) discloses the effect of the relevant fees, charges or costs may have on returns; (c) discloses any specific or additional fees, charges or costs that are payable by investors to receive any attractive feature of a product or service, if such feature is mentioned in an advertisement; and (d) does not suggest a product or service is ‘free’ or ‘low cost’ if, in fact, investors would pay indirectly through other ancillary fees, charges or costs associated with the product or service[22] (paragraph 8.11);

12. Where the fees, charges or costs are stated in foreign currency, it must be highlighted to investors[23] (paragraph 8.12);

13. An advertiser must take reasonable measures to inform investors that an advertisement, or a product or service that is advertised, is subject to any relevant warning, disclaimer, qualification or term and condition[24] (paragraph 8.13);

14. If not prohibited by any other relevant laws or requirements that may be imposed by the SC or other relevant regulators, an advertiser may include a forward-looking or forecast statement in an advertisement provided it is both relevant and there is reasonable basis for its inclusion; such statements must comply with any other relevant requirements that may be imposed by the SC or other relevant regulators[25] (paragraph 8.14);

15. An advertiser must ensure that any comparison, including comparison of benefits or returns, is accurate and balanced, and has a reasonable basis[26] (paragraph 8.15);

16. An advertiser must clearly state that an advertisement has not been reviewed by the SC[27] (paragraph 8.16);

17. An advertiser must not use the name or logo of the SC or include any information or presentation in an advertisement that may give the impression or imply that the SC recommends, endorses or is associated with the product, service or the advertiser, or any of its advertising activity[28] (paragraph 8.17);

18. If a product or service is described in an advertisement as having been approved or authorised by the SC, or the disclosure document or any relevant agreement or contract is described in the advertisement as having been registered by, lodged with or submitted to the SC, an advertiser must ensure that the advertisement also states that the SC’s approval or authorisation, or the registration, lodgement or submission of the disclosure document or any relevant agreement or contract to the SC does not amount to nor indicate that the SC has recommended or endorsed the product or service[29] (paragraph 8.18); and

19. An advertiser may use social media to advertise a product or service provided that the advertiser: (a) has considered the appropriateness of using social media to advertise the product or service; (b) has assessed the specificities and limitations of such social media; and (c) has addressed the risks associated with its use[30] (paragraph 8.20).

1. Appendix I – Guidance in relation to specific components; and

2. Appendix II – Guidance in relation to media platforms.