Guidelines on Investor Protection


  • Banking institutions licensed under the Banking and Financial Institutions Act 1989 (BAFIA) excluding investment banks;
  • Islamic banks licensed under the Islamic Banking Act 1983 (IBA) including international Islamic banks
  • Insurance companies licensed under the Insurance Act 1996 (IA); and
  • Takaful operators registered under the Takaful Act 1984 (TA) including international takaful operators.
  • Money brokers licensed under the BAFIA.

The Guidelines aim to provide guidance to financial institutions deemed as “registered persons” under the Capital Markets and Services Act 2007 (CMSA) in carrying out permitted capital market activities. Section 76(6)(c) of the CMSA requires financial institutions which are registered persons to comply with the investor protection provisions in sections 91, 92, 93 and 97 of the CMSA. Registered persons must also ensure their employees who carry out permitted capital market activities on their behalf are “fit and proper” as well as maintain a register containing the names of such employees.

Phased-in Compliance with Examination Requirements for existing staff
In order to avoid disruption to operations, registered persons are given a grace period of one and a half years from 1 January 2011 to ensure compliance with examination requirements for their existing employees as at 1 January 2011 as follows :

i) At least 50% by the first 6 months;
ii) At least 75% by the first 12 months; and
iii) 100% by 18 months.

(Note: New employees of registered persons joining after 1 January 2011 are required to pass the relevant examinations before they can undertake permitted capital market activities.)

The CPE points requirements will be effective beginning January 2011 with the operationalisation of the CPE tracker system. Registered persons may refer to the FAQ at the Securities Industry Development Corporation (SIDC) website at www.sidc.com.my for further information on the matter.

Other requirements in these Guidelines would be effective immediately upon the issuance of the Guidelines.

Queries may be directed to:

i. Puan Salbiah bte Amran: salamran@bnm.gov.my
ii. Puan Dayang Nuryati bte Abang Zainal Abidin: nuryati@bnm.gov.my

Issuing Department
Consumer and Market Conduct Department