Malaysia SC’s Toughest Ad Ban: What It Means for Forex

From November 1, Malaysias Securities Commission (SC) will enforce its revised Guidelines on Advertising for Capital Market Products and Related Services. Widely regarded as the strictest regulations to date, the new rules extend far beyond traditional finance, directly impacting forex brokers, introducing brokers (IBs), and financial influencers operating online.

Heavy Penalties: Fines and Jail Time

The new framework introduces unprecedented penalties. Any individual or entity promoting unlicensed capital market services in Malaysia—including forex, CFDs, and brokerage activities—faces fines of up to RM10 million, imprisonment of up to 10 years, or both. This raises the stakes significantly and underscores the SCs zero-tolerance stance toward unlawful promotions.

Three Main Targets of Regulation

Financial Influencers

Independent creators promoting investment products on social media will now be treated as advertisers. They bear full responsibility for ensuring accuracy, balance, and risk disclosure in their content, even if they are not formally employed by licensed institutions.

Licensed Institutions

Under the “advertiser liability” principle, licensed brokers and fund managers will be held accountable for violations committed by IBs, affiliates, or third-party marketers. This compels firms to tighten oversight of their partner networks.

Unauthorized Advertising

All channels—including websites, emails, and social media—are covered. Any unapproved promotional activity within Malaysias jurisdiction is strictly prohibited.

Impact on the Forex Sector

For international brokers without SC licenses, the rules effectively shut down traditional promotional channels. IBs, analysts, and KOLs who once relied on rebates or referral incentives face immense pressure to adapt, with compliance becoming the only sustainable path.

Local licensed firms, on the other hand, stand to benefit from reduced competition as non-compliant players are forced out. The industry landscape is expected to shift in favor of those who meet Malaysias strict licensing and capital requirements.

A Global Regulatory Shift

Malaysias move mirrors a global trend. The UAE has introduced a Finfluencer license, Australia has tightened controls on financial promotions, and in June 2025, the UK FCA led a multi-jurisdiction crackdown on illegal financial advertising, with support from regulators in Canada, Australia, Hong Kong, Italy, and the UAE. The message worldwide is clear: regulators are closing in on grey-market promotions.

Risk Awareness for Investors and Industry Participants

The tightening of rules highlights the growing risks tied to unauthorized advertising. For brokers, the costs of non-compliance are now prohibitive, while investors must be cautious about who they trust.

WikiFX Reminder: Before engaging with any broker or promotional content, check whether the entity holds a valid license. WikiFX provides global regulatory data, broker ratings, and user exposure reports, offering a reliable complement to SCs official register. Leveraging such tools is key to avoiding legal, financial, and reputational harm.