Rabat – The Moroccan Capital Market Authority (AMMC) has warned the public about unauthorized investment advice and fraudulent trading platforms that could expose investors to financial losses.
In a statement issued on September 16, the regulator urged investors to check information and verify the identity of people offering financial advice before committing their money. The warning comes as more people enter the stock market and encounter investment recommendations online.
The AMMC said it has noticed a growing number of recommendations to buy or sell shares circulating online and through private messaging groups. Some of these recommendations may amount to unauthorized investment advice, an activity regulated under Law No. 19.14 on the stock exchange, brokerage firms, and financial investment advisers.
The law requires financial investment advisers to register with the AMMC before carrying out the activity. The registration system includes requirements related to the adviser’s reputation, professional skills, and the prevention of conflicts of interest.
Fraudulent platforms follow a recurring pattern
The AMMC also warned about the growing number of potentially fraudulent trading platforms. These websites often use professional-looking designs and promise investors quick and high returns. In some cases, they also impersonate legitimate market professionals to gain the trust of potential investors.
According to the regulator, these platforms often follow a similar pattern. They first use misleading advertisements to attract users and encourage them to make an initial deposit. The platform may then display fictitious gains to convince users to invest more money. When investors try to withdraw their funds, the platform blocks the withdrawals before eventually disappearing.
The AMMC also noted that some trading platforms dealing with assets such as gold and foreign currencies do not fall under its supervision. Potential fraud involving those platforms therefore falls under ordinary criminal law rather than the AMMC’s regulatory framework.
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The regulator said unauthorized investment advice and the distribution of false or misleading financial information can lead to criminal penalties, including prison sentences and fines.
The AMMC urged the public to remain cautious about promises of high returns, verify the identity of anyone offering investment advice, and treat recommendations shared through private messaging groups with caution. It also advised investors to consult its official list of registered financial investment advisers.
The authority said it plans to launch a digital awareness initiative focused on investment scams. It also reminded the public about its financial education portal, “Le marché des capitaux pour tous,” which provides information on capital markets and investment in financial instruments.
