The move is set to increase the productivity of over 6,000 licensed representatives and provide new job opportunities in the Malaysian capital market for thousands of young Malaysian.

“The SC estimates the size of Malaysia’s capital market to more than double from RM2.0 trillion in 2010 to RM4.5 trillion by 2020, while the equity market is projected to grow from RM1.2 trillion in 2010 to RM2.4 trillion in 2020. The stockbroking industry as a critical pillar of our capital market must be encouraged to build greater intermediation capacity,” said Datuk Ranjit Ajit Singh, Chairman of the SC.

The guidelines encapsulate the criteria for entry, permissible scope of activities, registration process as well as the ongoing obligations of the stockbroking company for the registered person’s supervision, conduct, ongoing training and development. 

A person may apply to be registered either as a Trading Representative or Introducing Representative, but not for both. Interested applicants are subjected to entry and competency requirements and they will have to successfully complete a two-day familiarisation programme before submitting their application to the SC.

Upon registration with the SC, the Trading Representatives will be able to take orders and execute trades, while the Introducing Representatives can market and refer prospective clients to the stockbroking companies. 

 

All registered persons, including the Trading Representatives and Introducing Representatives, must comply with all relevant provisions of securities laws and guidelines and will be expected to fulfill the requisite standard of care and responsibility towards their customers.