The Securities Commission (SC) has the authority to formulate and issue guidelines, practice notes and regulations under sections 377 and 378 of the Capital Markets and Services Act 2007 (CMSA).


We seek to facilitate the orderly development of an innovative and competitive capital market underpinned by a regulatory framework that protects investors, promotes market integrity and reinforces financial soundness. To achieve this, the SC continuously increases the transparency of its rule-making process so that there is regulatory efficiency and effectiveness in an environment of “no more regulation than necessary”.


The SC’s rule-making process is adopted in formulating the securities laws and regulations or for guidelines and practice notes issued for the effective administration of the securities laws. The nature of legislative reforms demands that the process is elaborate and formal. The process applied for guidelines and practice notes depend on the nature and impact they have on capital market activities.


The following processes are initiated for rule making, depending on the nature and the needs for the specific rule change:


Types of consultations

Industry stake holders’ consultation Formal engagement and consultation with relevant stakeholders.
Advisory/focus group consultation Informal engagement through dialogues and focus group discussions with relevant stakeholders.
Public consultation A public consultation process in seeking feedback from the public through the posting of consultation papers on the SC’s website.


The SC will engage in public consultation when its proposed rule change:

  • has a high impact on capital market activities;
  • affects a broad range of stakeholders; or
  • leads to major law reform.

A proposed issues paper will be posted on the SC’s website for the public to review and provide their feedback. We will also issue a press release to alert the public about the issues paper posted on the website. We will collate and consider all representations received during the consultation process and assess the level of market acceptance for the proposal. If necessary, the SC will further engage with relevant stakeholders to seek clarification and obtain more feedback. The SC will then consider if the proposal needs to be amended given all the representations received from the public.


Assistance for the public

The SC will issue FAQs to assist the public to understand the policy basis for any new legislation, regulation, guidelines or practice note . The FAQs are published on the SC’s website and will be updated whenever the legislations, regulations, guidelines or practice notes are updated.