The Securities and Exchange Commission (SEC), Sri Lanka’s stock market watchdog, revealed in its 2023 annual report that it took action last year to combat the growing trend of unqualified individuals offering investment advice on social media.
The SEC has previously penalized licensed advisors for manipulating the stock market. However, a new concern has emerged: individuals with no qualifications posing as financial experts and offering investment guidance to the public through social media platforms.
“The widespread presence of unlicensed individuals offering investment advice, particularly on social media channels, has been a key area of focus for us this year,” said SEC Chairman Faizal Salieh.
Recognizing the potential harm caused by such unauthorized advice, the SEC took proactive steps to educate both these unqualified advisors and the general public. The focus was on clarifying the regulations governing the provision of investment advice.