KUALA LUMPUR: Multi-asset investment platform eToro has been added to the Securities Commission Malaysia’s (SC) investor alert list which provides information on persons or entities that do not comply with Malaysian securities laws.
This comes a day after the SC said eToro is not licensed or registered by the exchange regulator to carry out any regulated activities in Malaysia.
A check by theedgemarkets.com today found that eToro is among more than 100 entities on the SC's watch list. The list serves as a guide for investors prior to making any investment decisions.
Under the remarks section of the list, eToro is said to be carrying out capital market activities of dealing in securities and derivatives without a licence, and operating a recognised market without authorisation from the SC.
Yesterday, an SC spokesperson said any person carrying out regulated activities in Malaysia without a licence from, or registration with, the SC may be liable to a fine not exceeding RM10 million or imprisonment not exceeding 10 years, or both, if convicted.
"Malaysian investors who deal with unlicensed persons, especially entities operating offshore, are not protected under Malaysian securities laws. They are also exposed to various risks, including fraud and money laundering, and may not have access to legal recourse in the event of a dispute," the spokesperson told theedgemarkets.com in an emailed statement.
It was reported that eToro users in Asia are regulated through the Australian Securities and Investments Commission (ASIC). eToro started onboarding its Asian clients through its Australian entity in December 2018.
eToro says on its website that its operating unit eToro AUS Capital Pty Ltd is authorised by ASIC to provide financial services.
Elsewhere, eToro (Europe) Ltd is authorised and regulated by the Cyprus Securities and Exchange Commission, while eToro (UK) Ltd is authorised and regulated by the Financial Conduct Authority (FCA), according to the website.
eToro has yet to respond to the SC's statement and the company's inclusion in the investor alert list.