All trustees, issuing houses need to register with SC from January 2

KUALA LUMPUR: All trustees and issuing houses which provide capital market services will need to register with the Securities Commission Malaysia (SC) under a new registration framework, effective January 2, 2019.

In a statement yesterday, the SC said the new registration framework, ‘Guidelines on Registration and Conduct of Capital Market Services Providers’, aimed to enhance the capital market services providers’ standards of conduct, as well as strengthen investors’ confidence and trust in the capital market.

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

“This follows feedback received from the industry after a public consultation paper was issued in 2016,” it said.

To enhance efficiency, the regulator said the new guidelines would implement a one-time registration instead of the current product-based registration which required 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.

According to the statement, the new registration framework was consistent with the SC’s 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,” it said.

In addition, it said the framework placed greater emphasis on board and management’s responsibilities by holding them accountable for the conduct of the registered entities and their representatives.