Kuala Lumpur, 12 April 2007
SC Malaysia accepted into high-level international group on cross border investor protection
Malaysia achieved a significant milestone, joining a select group of international regulators, to protect investors against cross-border abuse. The Securities Commission (SC) has been accepted as a signatory to a major multilateral agreement on information sharing and enforcement of securities laws. The announcement on Malaysia’s acceptance was made at the President’s Committee at the 32nd Annual Conference of the International Organisation of Securities Commissions (IOSCO) in Mumbai, India, which was inaugurated by the Finance Minister of India, Shri P. Chidambaram.
The acceptance of the SC as a signatory to the IOSCO multilateral memorandum of understanding (MMOU) represents a major milestone in strengthening supervision and enforcement efforts in the capital market and is a recognition of the SC as a key regulator with strong enforcement capability by the world’s most important grouping of securities regulators. IOSCO members regulate more than 90% of the world’s securities markets.
“Becoming a signatory to the multilateral memorandum of understanding (MMOU) further enhances SC’s supervision and enforcement capabilities to protect the Malaysian market against any potential cross-border market abuse and to raise the level of overall investor protection in our market place,” SC Chairman Dato’ Zarinah Anwar said in Mumbai, where she is attending the 32nd IOSCO annual conference.
“The MMOU sends a clear message to markets that regulators are co-operating and watching out for potential securities and derivatives fraud. The IOSCO MMOU creates a valuable cross-border network for efficient and timely information exchange by regulators to combat international financial fraud and market manipulation,” she added.
Jane Diplock, Chairman of the Executive Committee of IOSCO said, “I am delighted to see Malaysia in the co-operative network of global regulators given the strong leadership role that the SC has played in the international regulatory fora.”
M. Damodaran, Chairman of the Securities and Exchange Board of India and Chairman of IOSCO’s Emerging Markets Committee, stressed “It is important for Malaysia to become a signatory to the MMOU as it is a major emerging market jurisdiction with strong enforcement capabilities.”
With the admittance of the SC as a MMOU signatory, the SC will now have an extensive framework for assistance and mutual co-operation with regulators from major developed markets including the United States Securities and Exchange Commission, the Financial Services Authority UK, and the United States Commodities Futures and Trading Commission.