SC enhances guidelines on corporate finance advisers

It is proposing to expand pool of qualified service personnel

KUALA LUMPUR: The Securities Commission (SC) is proposing to expand the pool of qualified service personnel (QSP) by allowing lawyers and reporting accountants with the relevant experience to join.

Any corporate finance adviser seeking to enter the SC’s approved list must have at least two QSP with competency and experience.

This is among the proposals contained in a consultation paper released by the SC yesterday to seek feedback on an enhanced framework for principal advisers.

The paper, which is part of the regulator’s ongoing efforts to develop a competitive and efficient capital market, was issued after a holistic review conducted last year on the 2009 Principal Adviser Guidelines.

“As part of the review, the SC had, in April 2016, conducted a survey to identify needs and concerns in the corporate finance industry. Feedback received from the 14 approved principal advisers (APAs) indicated that there is a need for expansion of the current pool of QSP and common standards for submission,” it said in a press statement.

The SC, through the consultation paper, is seeking responses from the public on several proposed enhancements, including providing clarity on the roles and responsibilities of QSP and APAs.

Among the new suggested responsibilities of APAs and QSP are to ensure that at least one QSP is assigned to each team working on a specific corporate proposal and that the QSP must monitor and supervise the team until completion of the proposal.

The SC, aware of the challenges faced by APAs in increasing the number of QSP, is also proposing new eligibility criteria for registration of QSP which includes admission of lawyers and reporting accountants with relevant experience as well as foreign corporate advisers who were employed on a full-time basis by an APA.

“These enhancements are in line with the SC’s efforts in promoting the quality of due diligence in corporate proposals submitted to the SC and the governance standards of industry gatekeepers in order to maintain the integrity of the capital markets and protect investors’ interests. To this end, the SC will also enhance its monitoring of QSP‘s continuous involvement in the preparation and submission of corporate proposals,” the regulator said.

Comments and feedback must be submitted by April 30.