FAQ: Do Not Invest in Illegal Internet Investment Schemes

Filed under Investing, Stocks

Following the recent announcement by the Securities Commission (SC) that it would start blocking access to illegal investment websites commencing 11 June 2007, the SC has received 349 public enquiries on the matter. As a general guide to the public, the SC today issued a set of frequently-asked-questions covering various facets of the impending move to block illegal investment websites.

1) Why is the SC blocking access to these illegal investment websites?

The SC has issued repeated warnings to investors on the risks of investing with illegal schemes and also continuously reminded the public to only invest with licensed persons to be accorded the protection provided under the securities laws. However, despite the repeated warnings, the rising number of public enquiries and complaints, shows that the public continues to participate in such illegal investments. Therefore, the SC has to take stronger enforcement measures including preventing the public from accessing these illegal investment sites.

The SC will continue to take all measures to fight illegal investment activities in order to protect investors and the integrity of the Malaysian capital market as a whole.

2) How does the SC know that these websites are illegal?

The illegal investment websites are detected through the SC’s surveillance and investigation, and information received from members of the public.

3) Which websites will be blocked? Why isn’t the SC blocking access to all the websites on its list of unauthorised websites?

On 11 June, the SC will start blocking a selection of websites on its list of unauthorised websites. Blocking of websites is only one of the many steps that can be taken. It will be done in stages and is an ongoing process. The SC will continue to take all measures to fight illegal investment activities including taking enforcement action against operators and agents of illegal investment websites. The SC will determine the appropriate steps to be taken on a case-by-case basis.

4) Besides the blocking of websites, what else will the SC do?

The SC will take all measures to fight illegal investment activities including taking enforcement action against operators and agents of illegal investment websites. The SC will also continue with its investor awareness programmes.

Further reading: Bahasa Melayu | English


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