SC to Register Trustees and Issuing Houses under New Guidelines to Enhance Investor Protection

19 October 2018 | Kuala Lumpur

The Securities Commission Malaysia (SC) today introduced a registration framework for capital market services providers to enhance their standards of conduct and strengthen investors’ confidence and trust in the capital market.

Under the new Guidelines on Registration and Conduct of Capital Market Services Providers, which takes effect 2 January 2019, all trustees and issuing houses providing capital market services will need to register with the SC.

In view of the critical functions undertaken by trustees in safeguarding investors’ assets and interest, the SC has introduced this new Guidelines to streamline existing requirements and introduced registration criteria, such as entry standards and on-going conduct obligations, to create a level playing field among trustees. This follows feedback received from the industry after a public consultation paper was issued in 2016.

To enhance efficiency, the new Guidelines will implement a one-time registration instead of the current product-based registration which requires trustees to renew registration periodically. The SC will also enhance the supervision of trustees to ensure that they continue to remain fit and proper when carrying out their obligations and responsibilities.

The new registration framework is consistent with the SC’s efforts to realign its regulatory approach in order to enhance the capital market ecosystem. It also seeks to ensure that capital market services providers prioritise investors’ interest in all their decision-making processes. In addition, the framework places greater emphasis on board and management’s responsibilities by holding them accountable for the conduct of the registered entities and their representatives.

The new Guidelines for Registration and Conduct of Capital Market Services Providers can be found at /legislation-guidelines/licensing-registered-persons/

SECURITIES COMMISSION MALAYSIA