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

28 May 2020

On 4 May 2020, the Securities Commission Malaysia (“SC”) issued the new Guidelines on Advertising for Capital Market Products and Related Services (“Guidelines”) to promote responsible advertising of capital market products and services and encourage greater use of digital channels. The Guidelines supersede the Guidelines on Unit Trust Advertisements and Promotional Materials and replace certain clauses under the Guidelines on Private Retirement Schemes, the Prospectus Guidelines and the Guidelines on Compliance Function for Fund Management Companies (collectively, “superseded Guidelines”).

The Guidelines took effect on 4 May 2020 for advertisers who are subject to the superseded Guidelines and advertisers who are issuers of structured products. For other advertisers, the Guidelines will take effect from 4 August 2020.

Under the Guidelines, product issuers, recognised market operators, persons undertaking regulated activities and capital market service providers are no longer required to submit their advertisement materials to the SC as long as they comply with the standards under the Guidelines. The Guidelines allow advertisers greater flexibility through the usage of a wider range of advertising platforms, including social media, messaging applications and video streaming to promote their products and services.

Advertisers who were subject to the superseded Guidelines will need to ensure compliance of their advertisements and promotional campaigns with the new Guidelines. Other advertisers who now fall within the remit of the Guidelines will be given a three-month grace period for familiarisation and compliance.

Reference materials

The following materials are available on the SC website www.sc.com.my:

 

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