SIDC Module 6 Licensing question: Provision of Investment Advice

SIDC Module 6Licensing

Under the Guidance Note on Provision of Investment Advice, which of these unlicensed persons are likely to need a licence? (i) An influencer earning affiliate commissions from posts urging followers to buy a named fund (ii) A trainer running paid seminars on general chart-reading techniques, with no stock calls (iii) A seminar speaker who urges attendees to buy a named Bursa stock (iv) A user who shares a genuine personal experience of a fund without recommending it

A (i) and (iii) only
B (ii) and (iii) only
C (ii) and (iv) only
D (i), (ii) and (iv) only

Show the answer and explanation

Answer: A. (i) and (iii) only

The Guidance Note looks for recommendations or opinions likely to induce a buy, sell or hold action, given as a business. Statement (i) is caught: para 3.9 says affiliate marketing arrangements count towards 'carrying on a business', and urging followers to buy a named fund is a recommendation. Statement (iii) is caught: para 3.2 says a licence is required if any trainer or speaker makes a statement amounting to a recommendation on a particular instrument. Statement (ii) is not: para 3.2 says training on general trading techniques is not likely to need a licence. Statement (iv) is not: para 3.9 says sharing a genuine user experience, without a recommendation, is not likely to need one. Source: Guidance Note on Provision of Investment Advice (R2-2024) paras 2.2, 3.2, 3.7, 3.9 (as at October 2026).

Common mistake

Candidates treat every paid seminar as advice, or every post about a fund as harmless; the test is recommendation plus business.

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

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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.