Statement of SC’s Principles and Standards

The advent of Technology and Digitisation has far-reaching implications on society.

Today, the pace of change in financial markets is rapidly accelerating via the use of new technology, allowing for the emergence of innovative market-based financing models such as equity crowdfunding and peer-to-peer (P2P) models.These new alternative capital-raising avenues allow for greater democratisation of finance for the underserved small businesses and entrepreneurs with innovative business ideas.

As part of the SC’s ongoing efforts in fostering greater innovation in finance through the use of technology, we have launched the aFINity@SC initiative to call for greater participation from the industry to catalyse and nurture the development within the digital finance and technology space for Malaysia.

Purpose

The purpose of the Statement of Principles and Standards is to facilitate efficient and ethical engagement between the SC and its external stakeholders. In this Statement, reference to business stakeholders includes suppliers, contractors, vendors, service providers and consultants. The Statement governs how the SC would conduct its business affairs in procuring goods and services and the SC expects its business stakeholders to emulate similar ethical principles. Notwithstanding the above, all market participants engaging with the SC are also expected to apply the ethical principles set out in this Statement.

In engaging and dealing with its stakeholders, the SC embraces the following principles:

Principle 1: Ethics and Integrity
The SC promotes and enforces a culture of integrity and compliance that reflects our mission and values. The SC’s Code of Conduct are the foundation and cornerstone which promote and guide SC staff in embracing this culture.

All SC staff shall act in an honest and ethical manner when dealing with each other, business stakeholders and other third parties, to promote trust and confidence. We recognize that lapses in integrity, however isolated, compromise such trust and confidence in the SC and undermine our effort in serving stakeholders of the Malaysian capital market and the nation.

When dealing with external parties including business stakeholders, the SC expects high standards of ethical conduct. In this regard, SC’s management is guided by a Standard Operating Procedure when handling requests for meetings from members of the public or industry. The SOP requires that meetings with members of the public be held at SC’s premises. It also stipulates circumstances when a meeting between SC’s management and members of the public or industry are discouraged or should be avoided.

The SC adopts a zero tolerance policy on all forms of bribery and corruption, and no person shall offer, promise and provide any gratification to any SC employee as inducement to gain any personal, regulatory, commercial or contractual advantage. Any allegation of corrupt practice by employees of the SC as well as employees and agents of external contractors, suppliers and consultants doing work for and on behalf of the SC will be taken seriously.
Conflicts of Interests
An integral part of ethics and integrity is the avoidance of conflict of interest. In this regard, all SC staff and their immediate family members have the obligation to avoid putting themselves in situations of conflict where their personal interest is conflicted with the interest of the SC. A process on declaration of interest has been put in place within the SC to ensure that SC employees adhere to this requirement.
Gift and Hospitality Policy
The presentation of gifts to or by an employee of the SC is discouraged. This is to avoid suggestions of undue influence or a perception of conflict of interest in the SC’s dealings. Where the presentation of gifts is unavoidable, for example when refusal would cause offence or embarrassment, the SC employee is guided by internal policy that sets out the Commission’s position on giving, receiving and declaring gifts.
In line with the SC’s commitment to promote ethics and integrity, all business stakeholders who deal with the SC are encouraged to raise any concerns they may have with regard to any wrongdoing by SC staff. Under the SC’s Internal Whistle-blowing Procedure, whistleblowers are protected. They have the assurance from the SC’s top management that they would not be disadvantaged when reporting on any matters of concern. Needless to say, whistleblowers are expected to make reports in good faith.
Principle 2: Transparency and Disclosure
The SC operates with a high degree of transparency in all aspects of its business activities. We believe in keeping the market and stakeholders informed of our activities and we strive for transparency in everything we do, subject to confidentiality and other legal requirements. The SC embraces continuous disclosure by providing the market including the media with access to relevant information about our activities; policies, rules and regulations on our web site www.sc.com.my.
Principle 3: Adherence to Client Charters
The SC has implemented various initiatives to increase process efficiency and shorten time-to-market. The aim is to make it easier for our stakeholders to do business with us. We publish our service delivery processes and client charters, as well as the details of our quarterly performance, on our website. Reasons for rejecting corporate proposals are also released to improve the transparency of our decision making. Greater transparency of our processes and accountability enables the public to gauge our performance against established service standards.
Principle 4: Maintaining Confidentiality
In dealing with our stakeholders, we understand that our stakeholders have a reasonable and legitimate expectation that communications made by them to the SC will be kept confidential. In this regard, the SC’S Code of Conduct requires its staff to maintain confidentiality of information entrusted to them by stakeholders. Disclosure of such information will however be made if it is necessary and where there is a legal obligation for the SC to do so. Information which is considered confidential includes transactions and legal proceedings relating to the SC which have not yet been made public.
Principle 5: Providing a Safe Environment and Workplace for Staff
The SC has established a safe and healthy work environment in compliance with all regulatory requirements, relevant standards and code of practices regarding health, safety and protection at the workplace. The SC manages its business in ways that are sensitive to the environment. The SC recognizes that the health and safety of its staff are a matter of top priority and the SC’s internal committee adopts systematic review of all occupational, health and safety issues to improve the work environment.
Principle 6: Environmental and Social Responsibilities
Besides serving as a responsible regulator, the SC recognizes that it also has social and environmental obligations to the community in which we operate. Our policies and practices with respect to corporate social responsibility and sustainable development continue to develop and evolve, and the SC is committed to continuously improve our contribution in this regard.

The SC is committed to integrate environmental considerations across our operations, including through the sensitive and effective management of water, energy, consumption of paper and other materials.
Principle 7: The SC’s Expectations of the People with Whom SC Does Business
The SC expects business people who provide goods and services to the SC to comply with relevant laws and demonstrate the ability to meet the SC’s requirements in terms of standards, quality and reliability which include:

ability to minimise any adverse impact on the environment
ability to comply with relevant laws and regulations with regard to treatment of employees
compliance with high standards and quality for all products designed and supplied to the SC
The SC is committed to live by these principles and its application is underpinned by a comprehensive set of procedures to ensure our staff understand, apply and behave in accordance with these principles. We have no doubt that these principles will promote and strengthen the SC’s engagement with all its stakeholders.