The Securities Commission Malaysia

On 1 March 1993, the Securities Commission Malaysia (SC) was established under the Securities Commission Act 1993 (SCA).

The SC strives to achieve the following mission:

"To promote and maintain fair, efficient, secure and transparent securities and derivatives markets; and to facilitate the orderly development of an innovative and competitive capital market".

Key functions, powers, and responsibilities

The SC reports directly to the Minister of Finance in Malaysia, and its financial accounts are presented to Parliament on an annual basis.

• Rules making and enforcement, including the regulation of the Malaysian capital market

• Making inquiries into the conduct of all capital market participants and regulating exchanges, clearing houses, and registered market operators

• Regulation of all persons and corporations licensed pursuant to the Capital Markets and Services Act 2007 (CMSA);

• Regulation of compliance and enforcement of the securities laws, in particular, the role of our supervisory and market integrity functions to uphold a safe and transparent financial marketplace.

Key areas of responsibility

The SC's responsibilities encompass a broad range of activities geared towards the sustainable development and innovation of the Malaysian capital market.

It's everyone's responsibility to oversee the capital markets by:

• Growing the capital market, including its segments, namely the equity, bond, and sukuk markets, Islamic capital market, fund management, derivatives, and market-based services

• Encouraging innovation and digital change with capital markets solutions

• Encouraging a sustainable financing ecosystem to create long-term development in the capital market

• Supervising and enforcing proper conduct of market participants and licensed entities

• Encouraging good corporate governance

• Developing international regulatory cooperation and providing thought leadership in the global capital markets.

Investor Protection and Market Integrity

Safeguarding investors' interests is the basis of all the Securities Commission's (SC) activities.In every regulatory decision, policy initiative, and enforcement initiative, the related considerations are:

• Protection of investors from misconduct and fraud.

• Promoting financial literacy and improving the public's knowledge of investing

• Maintaining integrity and transparency in the Malaysian capital market

Regulatory Scope and Functions

The SC has many regulatory functions in the Malaysian capital market:

• Is the registering authority for corporate prospectuses (except for unlisted recreational clubs)

• Approving corporate bond issues

• Regulating all matters related to securities and futures contracts

• Supervising all takeovers and mergers of companies

• Regulating unit trust schemes and fund management

• Is the licensing and supervising authority for all licensed intermediaries and professionals

• Is the supervising authority for exchanges, clearing houses, and central depositories

• Encouraging self-regulation by the market participants

• Ensuring legitimate conduct of market institutions and licensed entities

Functions under the Securities Commission Act

The SC statutory functions, as set out in the SC Act 1993, include:

1.Advising the Finance Minister on all matters relating to the capital market

2.Regulating and overseeing all aspects of capital market activities

3.Enforcing compliance with securities laws

4.Supervising all substantive corporate takeovers or mergers of companies

5.Promoting and regulating fund management, including unit trusts and private retirement schemes

6.Reviewing and recommending amendments to the securities laws

7.Promoting research, training, and development in the capital market

8.Promoting self-regulation by professional bodies and market institutions

9.Licensing, registering, and supervising all persons and entities providing capital market services

10.Maintaining the integrity of all licensed and registered participants

11.Registering and supervising the auditors of public interest entities and scheduled funds

12.Promoting confidence in audited financial statements and maintaining a practical audit oversight framework

13.Keeping track of the overall integrity of the capital market and mitigating systemic risks

14.To promote and regulate corporate governance and approve accounting and professional qualification standards