REGULATION

To ensure trust and confidence in the capital market, the SC regulates the capital market based on the principles of transparency and proportionality to commensurate with the risks posed.

We actively update and enforce our regulations and securities laws to ensure that the capital market operates in a fair and orderly manner as well as to reduce systemic risks. Here you will find a list of our Acts, guidelines, consultation papers, frequently asked questions on our regulations, technical notes, updates on our enforcement actions as well as licensing information.

acts

TECHNICAL NOTES, PRACTICE NOTES AND CIRCULARS

Enforcement

Latest on Regulation

25 May 2023

FAQ on Guidelines on Contracts for Difference

Revised as at 25 May 2023

19 April 2023

Guidlines on Recognized Market

The Guidelines on Recognized Markets (Guidelines) are issued by the Securities Commission Malaysia (SC) pursuant to section 377 of the Capital Markets and Services Act 2007 (CMSA) read together with subdivision 4, division 2 of Part II CMSA.

14 April 2023

Licensing Handbook (16th Revision)

This handbook is issued pursuant to section 377 of the CMSA and has the effect of a guideline issued by the Securities Commission Malaysia (SC). The SC can institute an action against any person contravening the requirements specified in this handbook, including administrative actions against licensed persons.

17 February 2023

Revised Guidelines on Sustainable and Responsible Investment Funds

The key amendments include enhancing the disclosure and reporting requirements for a fund seeking to qualify as an SRI Fund. Additional amendments to facilitate the implementation of the ASEAN SRF Standards in Malaysia by incorporating the requirements to qualify as an ASEAN Sustainable and Responsible Fund. Housekeeping amendments throughout the Guidelines to provide greater clarity and consistency. These amendments include stylistic or formatting changes and necessary changes of an editorial nature such as renumbering and rephrasing of certain requirements and contents, standardisation of terminology, updating of information, grammatical corrections and alphabetical order.

16 February 2023

Updated Frequently-Asked-Questions on Guidelines on Unit Trust Funds (UT Guidelines) and Prospectus Guidelines for
Collective Investment Schemes (CIS Prospectus Guidelines) (collectively known as CIS Guidelines)

This document replaces the FAQs on the Enhanced CIS Framework that was issued on 19 July 2016 and was last revised on 12 September 2017.

10 January 2023

Guidelines on Credit Rating Agencies

The Guidelines on Credit Rating Agencies (Guidelines) is issued by the Securities Commission Malaysia (SC) pursuant to section 377 of the Capital Markets and
Services Act 2007 (CMSA).

8 December 2022

Guidelines on Market Conduct and Business Practices for Investment Analysts and Their Analysts

These Guidelines seek to outline the core principles and minimum standards to be observed by Investment Analysts and their Analysts towards maintaining fair, efficient and transparent markets by ensuring objectivity, quality and transparency of their research and recommendation.

8 December 2022

Technical Note No. 1/2022 - Clarification on Licensing Requirements for Persons Offering Digital Investment Advice

The SC notes that the advisory business is growing and has attracted a lot of innovation in the ways in which advice can be provided to investors. One such innovation is the provision of advice digitally where algorithms are utilised by the providers to automate provision of advice, hereinafter referred as to as ‘digital investment advice’.

28 November 2022

Guidelines on Islamic Capital market Services and Products

The Guidelines on Islamic Capital Market Products and Services consolidates all Shariah requirements of Islamic capital market (ICM) products and services into a single document and acts as a single and central point of reference for Shariah principles and requirements commonly applicable to ICM products and services.

28 November 2022

Guidelines on Unit Trust Funds

These Guidelines are aimed at providing a regulatory environment that would protect the interests of the investing public and facilitate the orderly development of the unit trust industry in Malaysia. In addition, these Guidelines are also drawn up to govern the operation of unit trust funds established in Malaysia.

28 November 2022

Guidelines on Exchange-traded Funds

The Guidelines on Exchange-traded Funds (Guidelines) is issued by the SC under section 377 of the Capital Markets and Services Act 2007 (CMSA). These Guidelines set out requirements for a proposal in relation to the listing and quotation of units of a conventional or an Islamic ETF on the Main Market of Bursa
Securities, which may include the following:

(a) Establishment of a conventional or an Islamic ETF in Malaysia; and
(b) Issue and offering of units of such ETF.

28 November 2022

Guidelines on Listed Real Estate Investment Trusts

The Guidelines on Listed Real Estate Investment Trusts (Guidelines) is issued by the SC under section 377 of the Capital Markets and Services
Act 2007 (CMSA). These Guidelines set out requirements for a proposal in relation to the listing and quotation of units of a conventional or Islamic real estate
investment trust (REIT) on the Main Market of Bursa Securities, which may include the following:

Establishment of a conventional or Islamic REIT in Malaysia; and
Issue and offering of units of such REIT.

28 November 2022

Guidelines on Real Estate Investment Trust

The Guidelines on Real Estate Investment Trusts is issued by the SC under section 377 of the Capital Markets and Services Act 2007 (CMSA). These guidelines set out requirements to be complied with by any person intending to establish a conventional or Islamic unlisted real estate investment trust in Malaysia and issue, offer or invite any person who falls within the category of sophisticated investors to subscribe for or purchase units of the conventional or Islamic unlisted real estate investment trust.

28 November 2022

Guidelines on Unlisted Capital Market Products under the Lodge and Launch Framework

The Guidelines on Unlisted Capital Market Products under the Lodge and Launch Framework (Guidelines) is issued by the Securities Commission Malaysia (SC) pursuant to section 377 of the Capital Markets and Services Act 2007 (CMSA).

28 November 2022

Guidelines on Issuance of Corporate Bonds and Sukuk to Retail Investors

These Guidelines set out the requirements for an issue of, offer for subscription or purchase of, or invitation to subscribe for or purchase corporate bonds or sukuk to retail investors.

28 November 2022

Guidelines on Compliance Function for Fund Management Companies

The Guidelines on Compliance Function for Fund Management Companies is issued by the SC pursuant to section 377 of the Capital Markets and Services Act 2007 (CMSA). These Guidelines set out requirements to be complied with by any person intending to establish or carry out portfolio fund management activities in
Malaysia.

28 November 2022

Licensing Handbook (15th Revision)

This handbook is issued pursuant to section 377 of the CMSA and has the effect of a guideline issued by the Securities Commission Malaysia (SC). The SC can institute an action against any person contravening the requirements specified in this handbook, including administrative actions against licensed persons.

28 November 2022

Guidelines on the Registration of Venture Capital and Private Equity Corporations and Management Corporations

These Guidelines on the Registration of Venture Capital and Private Equity Corporations and Management Corporations (Guidelines) are issued by the Securities Commission Malaysia (SC) under section 377 of the Capital Markets and Services Act 2007 (CMSA) read together with section 76 of the CMSA.

28 November 2022

Guidelines on Venture Capital Tax Incentives

The Venture Capital Tax Incentives Guidelines are issued by the SC under section 377 of the Capital Markets and Services Act 2007 (CMSA). These Guidelines supersede the Guidelines for Annual Certification for Tax Incentives for the Venture Capital Industry.

4 April 2022

Guidelines on Market Conduct and Business Practices for Stockbroking Companies and Licensed Representatives

The Guidelines on Market Conduct and Business Practices for Stockbroking Companies and Licensed Representatives is issued by the SC pursuant to section 377
of the CMSA.

31 December 2021

Guidelines on Conduct for Capital Market Intermediaries

The Guidelines on Conduct for Capital Market Intermediaries (Guidelines) is issued by the Securities Commission Malaysia (SC) pursuant to section 377 of the Capital Markets and Services Act 2007 (CMSA).

31 December 2021

Guidelines on Corporate Governance for Capital Market Intermediaries

The Guidelines on Corporate Governance for Capital Market Intermediaries (Guidelines) is issued by the Securities Commission Malaysia (SC) pursuant to section 377 of the Capital Markets and Services Act 2007 (CMSA).

21 December 2021

Public Response Paper 1/2021 - Proposed Amendments to Guidelines on Unit Trust Funds and Consequential Amendments to Guidelines on Exchange-Traded Funds and Guidelines on Private Retirement Schemes

The Securities Commission Malaysia (SC) is issuing this Public Response Paper in response to the feedback received pursuant to the Public Consultation Paper on the proposed amendments to the Guidelines on Unit Trust Funds and consequential amendments to the Guidelines on Exchange-Traded Funds and Guidelines on Private Retirement Schemes dated 11 November 2020.

20 December 2021

Guidelines for Shariah Advisers

The Guidelines for Shariah Advisers (Guidelines) are issued by the Securities Commission Malaysia (SC) pursuant to section 377 of the Capital Markets and
Services Act 2007 (CMSA).

17 December 2021

Public Consultation Paper 1/2021 - Principles-based Sustainable and Responsible Investment Taxonomy for the Malaysian Capital Market

The Securities Commission Malaysia (SC) invites your written comments on this public consultation paper. Comments are due by 31 March 2022 and will only be received when submitted at this link www.sc.com.my/feedback-sri-taxonomy.

16 December 2021

Equity Guidelines

The Equity Guidelines are issued under section 377 of the Capital Markets and Services Act 2007 (CMSA) and applied by the SC in considering the following proposals under section 212 of the CMSA: (a) Issues and offerings of equity securities; (b) Listings of corporations and quotations of securities on the Main Market; and (c) Proposals which result in a significant change in the business direction or policy of corporations listed on the Main Market

22 November 2021

Guidelines on Unlisted Capital Market Products under the Lodge and Launch Framework

These Guidelines set out the requirements that must be observed for the purposes of exclusively making available unlisted capital market products to the persons described in paragraph 1 of Part 1, Schedule 5 of the CMSA.

22 November 2021

Offer of Shares by Unlisted Public Companies to Sophisticated Investors

These Guidelines are aimed at ensuring that there are controls established to ensure any offering including any marketing or distribution of its shares by a UPC to sophisticated investors are carried out in compliance with regulatory requirements. These Guidelines also imposes notification and reporting obligations on the UPC for such offerings.

22 November 2021

Prospectus Guidelines

These Guidelines set out the additional disclosure requirements to be disclosed in a prospectus pursuant to section 235(1)(f) of the CMSA, and information to be disclosed in an abridged prospectus pursuant to section 237(2) of the CMSA.

22 November 2021

Recognized Markets (ECF, P2P, DAX, PCF and E-SERVICES)

The Guidelines on Recognized Markets (Guidelines) are issued by the Securities Commission Malaysia (SC) pursuant to section 377 of the Capital Markets and Services Act 2007 (CMSA) read together with subdivision 4, division 2 of Part II CMSA

22 November 2021

Sales Practices

These Guidelines are issued pursuant to section 377 of the Capital Markets and Services Act 2007 (CMSA). These Guidelines shall be referred to as the Guidelines on Sales Practices ofUnlisted Capital Market Products.