SIDC Module 6 Licensing question: CMSA and the SC's Guidance

SIDC Module 6Licensing

Encik Zul holds no licence. He runs a paid Telegram channel that gives buy and sell calls on Bursa stocks to 2,000 subscribers. Under the CMSA and the SC's Guidance Note, he:

A Needs only to register the channel with Bursa Securities as an information service provider
B Needs no licence because he never handles subscribers' money or places trades on their behalf
C Is likely to be carrying on a business of investment advice without a licence, an offence under s.58
D Needs no licence as long as every post carries a clear disclaimer saying it is not investment advice

Show the answer and explanation

Answer: C. Is likely to be carrying on a business of investment advice without a licence, an offence under s.58

Investment advice is a regulated activity under Schedule 2 of the CMSA, and s.58(1) bars anyone from carrying on a business in a regulated activity without a CMSL. The Guidance Note (para 2.2) treats recommendations likely to induce a buy, sell or hold decision as advising, and says a fee-based subscription to a channel or group, including on social media, points to carrying on a business. Paragraph 2.2 also states that a disclaimer does not by itself relieve a person of the need for a licence. Handling money or trades is not part of the definition. Bursa Securities does not license advisers. Source: CMSA 2007 s.58(1), Schedule 2 Part 2 para 5; Guidance Note on Provision of Investment Advice (R2-2024) paras 2.1-2.2 (as at October 2026).

Common mistake

Candidates think a disclaimer, or not touching client money, keeps paid stock tips outside the licensing net.

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Study note: Licensing under the CMSA and the Licensing Handbook SIDC Module 6 practice questions & mock exams

Related SIDC Module 6 questions

Under the Guidance Note on Provision of Investment Advice, which of these unlicensed persons are likely to need a licence?Nurul passed Module 6 on 10 March 2024 and Module 7 on 5 May 2025 while still a student, and has never worked in the industry. She applies for a dealing in securities CMSRL on 1 April 2026. Which is correct?Kok Wai was a licensed dealer's representative until he left the industry on 1 June 2024 to run a cafe. On 15 March 2027 he reapplies for a dealing in securities CMSRL. Must he resit the SCLE?

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Original study material mapped to the public SIDC Module 6 syllabus. Unofficial, not endorsed by SIDC or the SC. Verify figures and rules against current guidance before relying on them.

SIDC Module 6 Licensing question: CMSA and the SC's Guidance

SIDC Module 6Licensing

Encik Zul holds no licence. He runs a paid Telegram channel that gives buy and sell calls on Bursa stocks to 2,000 subscribers. Under the CMSA and the SC's Guidance Note, he:

A Needs only to register the channel with Bursa Securities as an information service provider
B Needs no licence because he never handles subscribers' money or places trades on their behalf
C Is likely to be carrying on a business of investment advice without a licence, an offence under s.58
D Needs no licence as long as every post carries a clear disclaimer saying it is not investment advice

Show the answer and explanation

Answer: C. Is likely to be carrying on a business of investment advice without a licence, an offence under s.58

Common mistake

Candidates think a disclaimer, or not touching client money, keeps paid stock tips outside the licensing net.

Practise more Module 6 Licensing questions

Exam-style questions with worked answers, then full timed mocks. Free to start.

Start practising →

Build a daily practice habit — a few exam-style questions a day, with worked answers. Free to start.

Start practising →

Original study material mapped to the public SIDC Module 6 syllabus. Unofficial, not endorsed by SIDC or the SC. Verify figures and rules against current guidance before relying on them.