Navigating the investment maze with a reliable companion


PETALING JAYA: If you have less than RM500,000 in funds to invest, you should work with a licensed financial planner to secure safe and informed investment decisions, says a licensed financial planner.

Linnet Lee, licensed director of Resolute Planning Sdn Bhd, said Malaysians should exercise caution and seek guidance from licensed professionals to avoid unsatisfactory experiences and potential fraud when diversifying their portfolios.

"These licensed professionals have the proper systems to ascertain an investor's risk profile and recommend suitable investment portfolios," she said in an interview.

As the trend of financial influencers, or “finfluencers”, continues to gain popularity in Malaysia, Lee, who is also former chief executive officer of the Financial Planning Association of Malaysia, highlighted the importance of understanding the regulatory landscape for financial activities in Malaysia, noting that financial advisory services are governed by Bank Negara.

“Companies must obtain approval to market insurance products and provide holistic personal advice based on their clients’ needs,” she explained.

She also warned against unregulated financial activities, particularly in forex trading, saying: “Trading forex through unregulated entities in Malaysia is illegal. It’s crucial to only engage with licensed banks and money services businesses.”

Lee said stock investments fall under Bursa Malaysia and licensed securities companies for foreign stocks, including online platforms from investment banks and standalone platforms.

“Property investments are regulated by Bursa Malaysia and the Board of Valuers, Appraisers, Estate Agents and Property Managers.”

Cryptocurrency is suitable for investors who have a moderately aggressive or aggressive risk profile, she said.

It should, however, be approached with caution and only through platforms registered with the Securities Commission Malaysia.

To distinguish between licensed financial advisors and online influencers, Lee urged consumers to verify their credentials through official channels.

“Check if a planner holds a licence through the Securities Commission Malaysia’s website.”

For genuine investment education, Lee suggested resources such as the Bursa Malaysia Marketplace, the Federation of Investment Managers Malaysia and InvestSmart Fest.

“Genuine stock traders may advertise on platforms like Facebook or YouTube, but it’s essential to verify their background.

“If you cannot get any info, it’s better to err on the side of caution and not subscribe.”

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