Which regulator to check

Shares, unit trusts, derivatives and other capital market products are regulated by the Securities Commission Malaysia (SC). Search the SC Investment Checker at sc.com.my/investment-checker.

Services from the Labuan International Business and Financial Centre, such as money broking or Labuan banking, are licensed by Labuan FSA. Search its licensed-entity lists at labuanfsa.gov.my.

For buying and selling foreign currency, Bank Negara Malaysia (BNM) says to deal only with licensed onshore banks.

Warning lists to check: the SC Investor Alert List, and Labuan FSA’s investor alerts, including its business restriction notice.

Step by step

1. Get the legal name and licence number in writing. Brand names and app names often differ from the licensed company’s name.

2. Search the SC Investment Checker by company name or registration number. It shows whether the company is licensed by the SC, whether the licence is valid, and whether it is on the Investor Alert List.

3. Search the SC Investor Alert List by name and by website address. Clone sites often use a licensed firm’s name with a different website.

4. For a Labuan licence, match the exact name and licence number on Labuan FSA’s list for that licence type. Then check the business restriction notice and the lists of surrendered or revoked licences.

5. Check the licence covers what you are being offered. A licence for one activity does not cover another, and a Labuan licence is not an SC licence.

6. Use links you typed yourself, not a “verification” link the company sends.

Common questions

Is a Labuan licence the same as an SC licence? No. Labuan FSA and the SC regulate different things under different laws.

If a company is not on the SC Investor Alert List, is it safe? Not necessarily. The SC says the list is not exhaustive. Check that the company is positively licensed, not just absent from a warning list.

The company says it is licensed overseas. Is that enough? An overseas licence does not mean it is authorised to offer services in Malaysia. The SC says that if you deal with an unauthorised entity, you will not be protected under Malaysian securities laws.

Where can I report a suspicious broker? The SC on 03-6204 8999, or BNM on 1-300-88-5465.