SC: Appointment Process for CEOs of Licensed Entities
18 June 2020   |   Kuala Lumpur

The Securities Commission Malaysia (SC) refers to various media articles on the former President & Group Chief Executive (PGCE) of Permodalan Nasional Berhad (PNB) that alluded to the SC’s approval process for the appointment of chief executives of licensed entities.

The SC would like to clarify that under the SC’s Licensing Handbook, a Capital Market Services Licence (CMSL) holder should seek the SC’s prior approval for the appointment of its chief executive. In doing so, a CMSL holder and its board of directors are required to conduct due diligence on the individual’s capability and competence to lead the licensed entity. This includes assessing, amongst others, the individual’s ability to exercise due skill and diligence in assuming the position. In addition, the SC will also conduct regulatory assessments on the background of the individual with relevant law enforcement agencies.

The SC’s requirements and practices are comparable with the standards applied by other capital market regulators in the region.

As a CMSL holder, PNB is required to ensure that all information submitted to the SC for the appointment of its former PGCE, including his work experience and academic qualifications provided in the application forms and supporting documents, are true and correct after it has conducted due diligence enquiries. This requirement is clearly stated in the relevant application form. In this regard, the company had declared to the SC that all information provided in its submission to the SC for the appointment of its former PGCE are true and correct.

Recently, the SC was notified of discrepancies in the company’s submission to the SC in relation to its former PGCE’s academic qualifications and work experience, and has since received confirmation of the discrepancies in the submission. The SC had sought clarification from relevant parties regarding these discrepancies. PNB’s response to the SC’s enquiries is still pending.
SC-World Bank-IOSCO Asia Pacific Hub Conference 2019: Enhancing Financial Inclusion through Islamic Finance and FinTech
(From left to right):
  1. Abayomi A. Alawode, Head of Islamic Finance, Finance, Competitiveness and Innovation, The World Bank Group
  2. Datuk Syed Zaid Albar, Chairman of the Securities Commission Malaysia (SC)
  3. Dr. Firas Raad, Country Manager for Malaysia, East Asia and Pacific, The World Bank Group 
  4. Datuk Zainal Izlan Zainal Abidin, Deputy Chief Executive of SC
about the SC
The Securities Commission Malaysia (SC) was established on 1 March 1993 under the Securities Commission Act 1993 (SCA). We are a self-funded statutory body entrusted with the responsibility to regulate and develop the Malaysian capital market.

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