Taking investment advice from so-called investment gurus can be dangerous. Learn the impact of bad decisions and how you can educate yourself in investing.
The Blight of Unlicensed Investment Advice
Due to the crisis caused by Covid-19 pandemic, investment advice is highly sought after, with investors trying to improve their finances and make money through investing. Retail participation in equity markets hit new highs both in Malaysia and globally as more newbie investors put money in the market.
But with the increased demand, there are unscrupulous people taking advantage of the situation self-proclaiming themselves as investment gurus and selling unlicensed investment advice or pushing “investment” products. Some recent cases include estate planning trusts being marketed as investments promising guaranteed returns, and insurance endowments being marketed using unauthorised illustrations and misleading returns projections, created without the knowledge of the life insurer.
There have also been online platform scams. Online broker RakutenTrade has warned the public not to fall into investment scams that have misusing the company’s name and falsely representing them. The company is the country’s first and only fully digital equities trading platform. All trades are executed using the official RakutenTrade website or via their iSpeed.my trading app.