In the process, the SC will consider all comments received during the one-month public consultation period, which commenced from the release of the consultation paper on 21 March 2000. Public response to the consultation paper has indicated, on the whole, support and approval for recommendations in the paper. The SC wishes to express its appreciation to all parties who have provided feedback to the SC.
To-date, the SC has already effected certain legislative changes in the move towards facilitating the provision of products and services in electronic form. Specifically, the Securities Commission Act 1993 has been amended (effective 1 July) to widen the definition of "documents" to include documentation presented in electronic form. Among others, this would enable for the submission, disclosure and reporting to the SC through electronic means. In tandem with this, the SC is currently developing an electronic reporting system. Physical infrastructure for the electronic reporting system is still at its developmental stage and will begin with a pilot implementation in areas requiring disclosure and reporting to the SC in licensing matters around mid-2001.
The SC is also in the process of amending other securities laws to incorporate elements relating to electronic commerce. For example, amendments to the Securities Industry Act 1983 will incorporate provisions to accord certainty to activities connected with the provision of products and services in electronic form, which will include among others, on-line trading, electronic-based investment advice, financial portals and Internet discussion sites. The SC will also amend various subsidiary legislation and issue guidelines to clarify provisions and requirements of securities laws that would relate to electronic commerce.
In continuance of the SC's stance to work together with relevant stakeholders in the capital markets to develop electronic commerce, a Working Group on Electronic Commerce in the Capital Market (WG) was established on 8 June 2000 to study the proposed legislative amendments in detail. Members of the WG comprise representatives from the Kuala Lumpur Stock Exchange (KLSE), Malaysian Exchange of Securities Dealing and Automated Quotation (MESDAQ), the Commodity and Monetary Exchange of Malaysia (COMMEX), the Kuala Lumpur Options and Financial Futures Exchange (KLOFFE), the Securities Clearing Automated Network Services Sdn Bhd (SCANS), the Malaysian Derivatives Clearing House (MDCH), the Malaysian Futures Brokers Association (MFBA) and the Association of Stockbroking Companies Malaysia (ASCM). The SC functions both as the secretariat and a member of the WG.
The WG will also study issues relating to the development of physical infrastructure to support the implementation of electronic commerce in the capital market. This will cover, among others, physical infrastructure for Internet order-routing as well as clearing and settlement for electronic broking.
The development of the framework for electronic commerce, which is part of the SC's Capital Market Masterplan, seeks to ensure the continuous progress of the Malaysian capital market that is in tandem with international advancements. Efforts in this direction are also consistent with other national-level initiatives on the development of electronic commerce.
