Most complaints received on investment schemes not under our purview: SC
PETALING JAYA: The majority of complaints received by the Securities Commission Malaysia (SC) were for investment schemes not under its purview.
The SC in its annual report for 2016 said, of the 433 complaints received last year, 32% were for investment schemes.
In 2016, 66% of the enquiries received were with respect to the licensing status or legality of schemes. Enquiries that do not fall under the SC’s purview are directed to the appropriate enforcement authority.
Schemes that may involve the jurisdiction of several agencies are escalated to the relevant working group, which involves Bank Negara Malaysia, the Ministry of Domestic Trade, Cooperatives and Consumerism, the Companies Commission Malaysia and the Royal Malaysian Police.
Improper conduct by public-listed companies (PLCs), their directors or officers constituted the second largest number of complaints.
Improper conduct by PLCs, their directors or officers made up 26% of complaints, while allegations of improper practices in securities or derivatives dealing were 18% of total complaints.
“In terms of complaints received against PLCs and their directors, 35% were related to alleged misconduct by company officials, while 21% were related to poor or misleading disclosures of information by the company,” SC said in its annual report.
Complaints related to improper, unfair or prohibited practices in securities dealing is an indication of the public’s awareness of their rights.
Some 25% of the complaints were related to unfair practices by intermediaries when carrying out their business activities, which may not necessarily result in breaches of laws, while unlicensed or possible fraudulent activities made up 19% of the complaints received.