[A Robert Chaen Investment Series]
If you realized that you have become a victim of investment scam, money games, or illegal fundraising, there are several simple ways to inform the relevant authorities.
The following are illegal activities according to Securities Commission Malaysia.
● It is illegal to raise Pre-IPO funds under the relevant Clause in the Capital Markets and Services Act 2007: Section 212 and Section 232.
● There are 287 individuals and companies in the list of unauthorized websites/ investment products/ companies / individuals in the Securities Commission Malaysia website.
● Reasons for being listed as illegal Activities:
Carrying activities without a license, without authorization from the SC, possible fraud scheme, issuing shares without prospectus, unauthorized usage of the SC’s name or logo in their website, raising Pre-IPO funds, unlicensed private equity or venture capital firm, offering IPO in website without license, illegal initial coin offering, marketing of foreign pre-IPO shares in Malaysia, furnishing false documents to the SC.
Security Commission Malaysia Website links:
●Investor Alert: List of unauthorized websites, investment products, companies, and individuals in the Securities Commission Malaysia website:
● Public Register of License Holders and Registered Persons of Private Equity / Venture Capital firms:
● Members of the public may contact the Consumer and Investor Office (“CIO”) by:
Calling (603) 6204 8999 from Monday to Friday (9.00am to 6.00pm);
- Emailing email@example.comTypes of compliant and enquiry does SCM look into:On capital market regulated activities of:
- dealing in securities;
- dealing in derivatives;
- unit trusts;
- fund management;
- advising on corporate finance;
- investment advice;
- financial planning; or
- private retirement schemes;
- Persons undertaking regulated activities without a valid licence or registration from SC. Examples include:
- Pooling of money from public for fund management or purchase of shares for investment purpose;
- Offering of platform to trade in indices, stocks, equity crowdfunding;
- Offering of platform to trade securities or derivatives based on automated advise/trading strategy;
- Individual/company promoting unlicensed scheme using the name of a licensed intermediary;
- Conduct of holder of Capital Markets Services Licence (“CMSL”) and Capital Markets Services Representative’s Licence (“CMSRL”);
- Conduct of Registered Person as prescribed in the Capital Markets and Services Act 2007, including market operators;
- Conduct of public listed companies and/or its directors and officers;
- Issuance and offering of securities without proper approval, authorization or recognition. Examples include:
- Offering of pre-IPO shares;
- Initial coin offering which results in issuance of securities;
- Issuance and offering of securities without registering prospectus or disclosure document with SC;
- Issues relating to take overs and mergers; and
- Any market misconducts offences such as market manipulation and insider trading etc.
● 5 Steps to make an Investment Scam Complaint with Security Commission Malaysia:
Step 1: Download and complete Complaints Form.
Click here >> https://tinyurl.com/yyr9h55g
Step 2: Choose if you want to claim protection under the Whistleblower Protection Act 2010.
Step 3: Details of company, office address, telephone, company directors names.
You can obtain the above information from the relevant websites, or a copy of the company directors and shareholders from SSM Suruhanjaya Syarikat Malaysia or Companies Commission Of Malaysia.
Step 4: State your complaint with as much details as possible.
Describe the events that happened and the dates on which they occurred.
Step 5: Attach documents and evidence to back up your compliant.
NOTE: Within a few days an email will confirm your whistleblower SCM Compliant by giving you a Case Reference number. If the assigned Duty Officer assess that this is legitimate case, you also receive an FILE ID, which means an EFile is opened to start collecting and filing more relevant evidence on the compliant.
Robert Chaen’s Biodata: https://tinyurl.com/y3jh6uxe
Published: 29th July 2020.
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● If you are a victim of big scam, and you are selected, Biting Pen EPlatform can hold a Press Conference and invite our Investigative Journalist Network to cover your scam story – after making a Police Report, and having a Lawyer present.
Section 212 & 232 of Capital Markets and Services Act 2007:
Requirement for approval, registration, authorization or recognition
- (1) This Part does not apply to a private retirement scheme.
(2) A person who proposes to undertake a proposal, scheme, transaction, an
arrangement or activity, or issue securities or offer for subscription or purchase of
securities, or issue an invitation to subscribe for or purchase securities, in relation to—
(a) the listing and quotation of securities of a corporation on a stock
(b) the transfer of a listing and quotation of securities of a corporation
from an alternative market to the main market;
(c) the listing or quotation of securities other than securities in
paragraph (a), including units of a business trust or Islamic
securities on a stock market;
(d) an acquisition or disposal of asset which results in a significant
change in the business direction or policy of a listed corporation,
listed unit trust scheme or any other listed entity whether or not in
relation to any proposal, scheme, transaction, arrangement or
activity, under paragraphs (a) and (b),
shall seek the approval of the Commission under Division 1A.
(3) A person who proposes to effect a compromise, arrangement or scheme
by way of issue of securities for the amalgamation of two or more listed corporations,
shall seek the approval of the Commission under Division 1A.
(4) A person who proposes to make available, offer for subscription or
purchase, or issue an invitation to subscribe for or purchase, outside Malaysia, securities
of a public company or listed corporation, or to list such securities on a securities
exchange outside Malaysia shall seek the approval of the Commission under Division
(5) A person who intends to make available, offer for subscription or
purchase, or issue an invitation to subscribe for or purchase unlisted capital market
products including unlisted Islamic securities but excluding units in a unit trust scheme,
(a) seek authorization of the Commission or in the case of a foreign
securities or capital market product, recognition by the
Commission, under Division 3A; and
(b) register with the Commission, a disclosure document containing
information and particulars as may be specified by the
Commission under section 92A.
(6) Notwithstanding subsection (5) or any other written law, a person shall
register a business trust with the Commission, or in the case of a foreign business trust,
seek recognition by the Commission, under Division 3B, if the person intends to—
(a) establish, operate, or assist in establishing or operating the
(b) hold himself out as operating the business trust; or
(c) offer or make available units in the business trust.
(7) The Commission may specify—
(a) any other proposal, scheme, transaction, arrangement or activity;
(b) the originating, offering or making available of any other capital
that must comply with the requirements under this Part.
(8) The requirements under subsections (2), (3), (4), (5) and (6) shall not
apply to any proposal, scheme, transaction, arrangement, activity, product or matter
specified under Schedule 5 or as may be prescribed by the Minister.
(9) A person who contravenes this section commits an offence and shall, on
conviction, be punished with imprisonment for a term not exceeding ten years and be
liable to a fine not exceeding three million ringgit.
Requirement to register prospectus in relation to securities
- (1) A person shall not issue, offer for subscription or purchase, make an
invitation to subscribe for or purchase securities or in the case of an initial listing of
securities, make an application for the quotation of the securities on a stock market of a
stock exchange unless—
[Am. Act A1406/2011]
(a) a prospectus in relation to the securities has been registered by
the Commission under section 233; and
(b) the prospectus complies with the requirements or provisions of this
(2) Unless authorised in writing by the Commission, a person shall not issue,
circulate or distribute any form of application for securities unless the form is
accompanied by a copy of a prospectus which has been registered by the Commission
under section 233.
(3) A person shall not issue, circulate or distribute any form of application for
securities of a corporation that has not been formed or of a unit trust scheme or
prescribed investment scheme that has not been formed.
(4) The Commission may for public information publish the registrable
prospectus submitted to the Commission before the registration of the prospectus under
(5) The publication under subsection (4) shall not indicate that the
Commission recommends the securities or assumes responsibility for the correctness of
any statements made or opinions or reports expressed in the registrable prospectus.
(6) For the purposes of this section, a “registrable prospectus” refers to a
prospectus that has been submitted under section 233 and which has yet to be
registered by the Commission.
(7) A person who contravenes subsection (1), (2) or (3) commits an offence
and shall, on conviction, be liable to a fine not exceeding ten million ringgit or to
imprisonment for a term not exceeding ten years or to both.