SEC in touch with social media platforms
The Securities Exchange Commission (SEC) has approached certain entities and platforms in the virtual space pertaining to the various posts violating the SEC regulations, officials said.
Recently the regulator cautioned those recommending investments online without proper registration as an investment advisor or an authorised entity under the SEC.
The officials said that the SEC has approached certain platforms pertaining to potential future incidents. The regulator is also pursuing this matter with the Sri Lanka’s Computer Emergency Response Team.
The SEC emphasised that social media content which is purported as investment recommendations must be substantiated and only disseminated by licenced professionals. Violators face severe penalties, including potential prosecution, fines of at least Rs. 10 million, or imprisonment of up to 10 years. This enforcement is designed at safeguarding investors’ interests against misleading advice often found on platforms like SMS, WhatsApp, Facebook, and YouTube, which can lead to market manipulation. The SEC’s recent media advertisements highlight the risks posed by unqualified “advisors” who exploit vulnerable individuals, luring them into high-risk investments or fraudulent schemes.
In 2023, the regulator banned an 18-year-old from the industry for five years for continuing to give investment advice on Twitter. The regulator has also intensified its scrutiny of financial influences on platforms such as Facebook and Twitter.
The SEC also started a dedicated website page in February 2024, allowing anyone to confidentially report suspected market-related misconduct on social media.
Hitad.lk has you covered with quality used or brand new cars for sale that are budget friendly yet reliable! Now is the time to sell your old ride for something more attractive to today's modern automotive market demands. Browse through our selection of affordable options now on Hitad.lk before deciding on what will work best for you!