Morocco’s Capital Market Authority Warns Investors Against Fraud, Unlicensed Advice

Rabat – Morocco’s Capital Market Authority (AMMC) has warned the public and investors to be careful and well-informed before making any investment, as cases of unlicensed financial advice and fraudulent trading platforms continue to increase.

The AMMC issued a statement on Monday saying it has noticed a growing number of investment recommendations to buy or sell shares being shared online, especially through social media and private messaging groups. The authority stated that these practices can expose investors to serious risks and harm the integrity of the capital market.

The AMMC explained that giving financial investment advice is a regulated activity under Moroccan law. According to Law No. 19.14, anyone who offers such advice must first be registered and licensed by the authority. 

This registration is important because it is linked to strict legal and regulatory rules that aim to protect investors, including guarantees related to the advisor’s integrity, professional skills, and the prevention of conflicts of interest, according to the statement.

The authority warned that some online recommendations may hide manipulative intentions, such as the “pump and dump” technique. In this case, people are encouraged to buy a security so its price rises, before the person giving the advice sells it to make a profit, leaving others with losses.

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The AMMC also alerted the public to the spread of potentially fraudulent trading platforms. These platforms often look professional and promise quick and high profits. The authority said these platforms usually follow the same pattern: false advertisements, pressure to make an initial deposit, showing fake profits to push victims to invest more, blocking withdrawals, and then disappearing completely.

The authority reminded investors that some trading platforms, including those related to gold or currencies, do not fall under its supervision. As a result, dealing with fraud linked to such platforms falls under general criminal law.

The AMMC added that operating without a license as an investment advisor, or spreading false or misleading financial information, can lead to criminal penalties, including prison sentences and fines.

It added that the first line of protection for investors is their ability to access information and verify the credibility of the sources they follow.