Kuala Lumpur, 8 October 2007

SC issues draft guidelines on due diligence conduct for industry feedback

The Securities Commission (SC) is currently developing a set of guidelines on due diligence conduct and has issued a draft to industry for feedback.

The guidelines form part of the SC’s efforts to strengthen the overall due diligence framework for Malaysia and in particular enhance standards of due diligence practices in relation to corporate proposals. The guidelines seek to articulate clearly for the industry, the due diligence obligations and expectations on the respective parties involved in corporate proposals submitted to the SC.

The SC has engaged with the industry on the strengthening and enhancement of due diligence practices. To this end, the industry is also reviewing its own guidelines on due diligence to reflect the high standards required of them.

Industry bodies that have received the draft guidelines include, among others, the Malaysian Investment Banking Association, Malaysian Institute of Accountants, The Malaysian Institute of Certified Public Accountants and the Bar Council.

The draft guidelines are available at here (pdf – 206KB).