SC enhances standards for capital market services providers

The SC said in a statement that Ong

KUALA LUMPUR: The Securities Commission is beefing up the rules for the capital market services providers with a registration framework, enhancing supervision of trustees to further protect investors’ assets and interest.

The regulator announced on Friday a registration framework for capital market services providers to enhance their standards of conduct and strengthen investors’ confidence and trust in the capital market. 

The SC said under the new “Guidelines on Registration and Conduct of Capital Market Services Providers”, which comes into effec on Jan 2, 2019, all trustees and issuing houses providing capital market services must register with the SC. 

“In view of the critical functions undertaken by trustees in safeguarding investors’ assets and interest, the SC has introduced this new guidelines to streamline existing requirements and introduced registration criteria, such as entry standards and on-going conduct obligations, to create a level playing field among trustees,” it said.

The SC said this followed the feedback received from the industry after a public consultation paper was issued in 2016. 

“To enhance efficiency, the new guidelines will implement a one-time registration instead of the current product-based registration which requires trustees to renew registration periodically. 

“The SC will also enhance the supervision of trustees to ensure that they continue to remain fit and proper when carrying out their obligations and responsibilities,” it said.

It said the new registration framework was consistent with its efforts to realign its regulatory approach in order to enhance the capital market ecosystem. 

It also seeks to ensure that capital market services providers prioritise investors’ interest in all their decision-making processes. 

“The framework places greater emphasis on board and management’s responsibilities by holding them accountable for the conduct of the registered entities and their representatives,” it said. 

 https://www.sc.com.my/legislation-guidelines/licensing-registered-persons/