Regulatory Performance and Outcomes

The SC’s mission to promote and maintain a fair, efficient, secure and transparent capital market is operationalised through its regulatory functions, which consist of rulemaking, gatekeeping, surveillance, supervision, complaints handling and enforcement. This chapter provides an account of the SC’s key regulatory activities in 2023, which were underpinned by proactive risk surveillance to identify priority areas and enable the SC to optimally focus its efforts and resources.

Despite the improvement in global financial markets following lower energy prices and a slower pace of monetary tightening, the capital market remained sensitive to potential deterioration in economic fundamentals such as persistently elevated core inflation and lingering geopolitical tension.

In 2023, equity fundraisings continued to register a higher number of equity applications submitted to the SC, compared to 2022. Out of the 22 equity applications received by the SC in 2023, nine of which were for initial public offerings (IPOs), two in relation to a proposed acquisition resulting in a significant change of business direction or policy, and 11 for transfer of listings to the Main Market of Bursa Malaysia Bhd (Bursa Malaysia)

In 2023, the SC considered 658 applications relating to collective investment schemes (CIS) and private retirement schemes (PRS), comprising applications to establish new funds, register prospectuses and disclosure documents, register deeds and other ancillary matters. 

The SC ensures that only fit and proper persons are licensed or registered to conduct capital market activities. A thorough assessment of each application will be made prior to its approval including conducting adverse checks with other regulators and authorities (Table 13 and Table 16). 

The SC undertakes proactive surveillance across the various market segments under its purview to detect potential misconducts and identify vulnerabilities which allows emerging risks to be pre-empted through early engagements and interventions.

In addition to its authorisation regime for licensed and registered capital market entities, the SC also operationalises a comprehensive supervisory programme across its spectrum of regulated entities to foster ongoing compliance and enable a holistic assessment of emerging risks and vulnerabilities.

To uphold investor protection, the SC has a structured process, system and dedicated resources to manage all complaints and enquiries received from the public.

The SC deploys a broad range of enforcement tools to address identified breaches of securities law, foster good conduct and lawful behaviour among capital market participants as well as ensure credible deterrence.

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