SC to en­hance role of trusties, cus­to­di­ans

> Seeks feed­back on re­vised reg­u­la­tory frame­work to safe­guard in­vestors’ as­sets

The Sun (Malaysia) - - SUNBIZ -

PETALING JAYA: Se­cu­ri­ties Com­mis­sion Malaysia (SC) is seek­ing pub­lic feed­back on a pro­posed reg­u­la­tory frame­work for trustees and cus­to­di­ans in the Malaysian cap­i­tal mar­ket.

In a state­ment yes­ter­day, the reg­u­la­tor said it recog­nises the sig­nif­i­cant role played by trustees and cus­to­di­ans in main­tain­ing in­vestors’ trust in the cap­i­tal mar­ket by safe­guard­ing in­vestors’ as­sets and in­ter­est.

Cur­rently there are 90 cus­to­di­ans and trustees safe­keep­ing about RM1.7 tril­lion worth of as­sets on be­half of in­vestors.

In view of the im­por­tant func­tions un­der­taken by th­ese en­ti­ties, SC is propos­ing to re­vise the reg­u­la­tory frame­work that in­clude stream­lin­ing en­try stan­dards and on-go­ing con­duct obli­ga­tions that will cre­ate a level play­ing field among trustees and cus­to­di­ans.

“To en­hance ef­fi­ciency, the SC also pro­poses a one-time reg­is­tra­tion to en­able trustees to pro­vide ser­vices for all cap­i­tal mar­ket prod­ucts in­stead of the cur­rent prod­uct-based reg­is­tra­tion,” it noted.

SC said this frame­work is con­sis­tent with its ef­forts in re­align­ing its reg­u­la­tory ap­proach from prod­uct-fo­cused to in­ter­me­di­ary/ac­tiv­ity-fo­cused.

“This frame­work will fo­cus on con­duct reg­u­la­tion to en­sure that trustees and cus­to­di­ans pri­ori­tise in­vestors in all of their de­ci­sion-mak­ing process.

“In ad­di­tion, it will place greater em­pha­sis on board and man­age­ment re­spon­si­bil­i­ties by hold­ing them ac­count­able for the con­duct of the reg­is­tered en­tity and their rep­re­sen­ta­tives,” it noted.

SC also stressed that it will en­hance the su­per­vi­sion of trustees and cus­to­di­ans to en­sure that th­ese reg­is­tered en­ti­ties con­tinue to re­main fit and proper when car­ry­ing out their obli­ga­tions and re­spon­si­bil­i­ties in pro­tect­ing in­vestors’ rights and as­sets.

The con­sul­ta­tion pa­per in re­la­tion to the pro­posed reg­u­la­tory frame­work is avail­able on SC web­site: www.sc.com.my and open for com­ments un­til Nov 12.

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