In a resounding commitment to enhancing the financial well-being of the public, the Financial Planning Association of Malaysia (FPAM) once again orchestrated a powerful event that brought industry experts, financial planners, and enthusiasts together under one roof to share knowledge and expertise. The annual flagship event, the FPAM Annual Signature Financial Symposium 2023, combined knowledge-sharing, strategic insights, and a dynamic platform for networking.
The event was distinguished by the esteemed presence of Datuk Seri Dr Awang Adek Hussin, Chairman of the Securities Commission Malaysia (SC). His attendance underscored the pivotal role that regulatory bodies like the SC play in shaping the financial landscape, ensuring its integrity, and safeguarding the interests of investors and consumers alike.
“In recent years, the financial planning industry has undergone a remarkable expansion, assuming an increasingly central role in bolstering the financial well-being of numerous Malaysians,” affirmed Datuk Seri Dr Awang Adek. “Between 2015 and 2022, the number of financial planning firms experienced a robust 42% surge, ascending from 31 to 44 firms by the close of 2022. Concurrently, the count of licensed representatives witnessed a remarkable 145% upswing during the same period, culminating at 1,455 as of the end of 2022.”
According to Jawahar Ali Ameer Ali, the General Manager overseeing consumer and investor affairs at The Securities Commission Malaysia (SC) during his session entitled “Scams & Client Protection”, SC has witnessed a sharp surge in reports and inquiries regarding illicit operations and fraudulent activities since the onset of the Covid-19 pandemic in 2020.
In 2020, the commission received 1,799 complaints. This number escalated to 3,475 complaints in 2021, followed by 2,461 complaints in 2022. As of the first half of the current year (1H 2023), the tally of complaints stands at approximately 1,670—roughly 60% of the total complaints recorded in 2022.
Jawahar Ali highlighted the predominant nature of the grievances. Many of these complaints were linked to illicit schemes propagated through social media channels, where these scams’ perpetrators often exploit sponsored advertisements on platforms like Facebook, craft counterfeit websites, and establish public Telegram groups to promote fraudulent investment packages. These offerings are frequently accompanied by fabricated testimonials and certificates falsely attributed to reputable institutions.
He further underscored the fraudulent nature of such social media-based investment schemes, urging investors to exercise caution if prompted to deposit funds into personal bank accounts. He noted that significant losses, amounting to tens of millions, have been incurred by investors falling prey to these scams, highlighting that most of these scams were most rampant after the Movement Control Order (MCO) that hindered movement amongst the public due to Covid-19.
“Never transfer money (for investment) to an individual account. If you are asked to transfer money to a personal bank account or to a bogus company bank account, these are normally mule accounts and you are probably being scammed”, he cautioned the audience.
To counteract this alarming trend, Jawahar Ali outlined the various measures and initiatives the SC has undertaken to alert the public. In the first half of 2023 alone, the commission executed two enforcement actions, issued 170 alerts, blocked 95 websites, disabled six Instagram accounts, suspended 74 Telegram accounts, and intervened in 58 cases involving Facebook.
Meanwhile, Alvin Tan Chin Cherng, President of FPAM, highlighted the essential role of the symposium titled “Financial Planning Evolution”, during his opening address. He regarded the event as a pivotal platform for industry professionals to navigate the intricate landscape of today’s financial world, immersing in an extensive spectrum of financial topics, including combating scams and safeguarding clients, adapting to digitalization and risk management, exploring digital assets, promoting sustainability, and comprehending the emerging global order.
“To encourage clients to seek the guidance of financial planners, FPAM is advocating for the inclusion of a tax relief of RM1,000 for financial planning fees in the 2024 budget,” Tan added.
Additional speakers at the event included Mr. Donald Soo, Group CEO & Founder of KoiZai, Mr. Liew Ooi Han, CEO of Halogen Capital Sdn Bhd, and Mr. Stephen Yong, CFP, Director of Wealth Vantage Advisory and Founder of My.PF.my.
A key highlight of the event was the Panel Session titled ‘The Emerging New World Order,’ moderated by Mohd Sedek Jantan – Head of Wealth Research & Advisory at UOB Kay Hian Securities (M) Sdn Bhd. The panel featured insightful discussions from esteemed experts, including Prof. Dato’ Dr. Rajah Rasiah – Distinguished Professor of Economics at Asia Europe Institute Universiti Malaya, Dr. Ray Choy – Chief Economist at Malaysia Rating Corporation (MARC), Ms. Adelene Teo – Economic Advisor at the British High Commission, Ms. Nadia Jalil – Regional Head and Group Economic & Market Analysis at CIMB Bank Berhad, as well as Mr. Jerry Lee Chee Yeong – Portfolio Manager at iFAST Capital Sdn Bhd.
