Page 45 - SC SCAR 2023 ENGLISH Flipbook

PART 2 REGULATORY PERFORMANCE AND OUTCOMES
In 2023, the SC conducted an RA on an RMO-DAX, focusing on the adequacy and effectiveness of its ongoing due diligence framework vis-à-vis the SC’s AML Guidelines. Arising from the assessment, the SC had identified several areas for enhancement including the need for greater consistency in the implementation of policies and procedures, formal documentation and record-keeping as well as more effective governance and oversight by the board of directors.
Supervision of Self-Regulatory Organization
The SC supervises the Federation of Investment Managers Malaysia (FIMM) in ensuring proper discharge of its regulatory mandate as a self-regulatory organization (SRO) for public interest and investor protection.
A proactive supervisory approach had been operationalised to facilitate effective supervision on FIMM through reporting obligations and engagements with FIMM’s board of directors and senior management. The SC also participated in major programmes by FIMM which include the annual general meeting, industry regulatory briefing and FIMM’s annual convention to observe supervisory issues and trends concerning marketing, distribution and sales practices involving unit trusts and PRS.
In 2023, it was observed that FIMM had implemented most of the recommendations from the SC’s previous RA to further strengthen the effectiveness and efficiency of the registration, supervision and enforcement functions. Additionally, various efforts for industry development, education and financial literacy were also rolled out as part of FIMM’s developmental mandate.
Supervision of the Private Pension Administrator
As a central administrator, the Private Pension Administrator (PPA) provides data repository services for members and providers as well as investor education on PRS. The SC’s oversight on PPA aimed to ensure that it continued to adopt sound governance practices and discharge its functions effectively within a satisfactory operational framework.
In 2023, PPA continued to provide enrolment and top- up services via the PRS Online platform which remained a key utility for its members and the investing public. Given its role in investor education, PPA also introduced various marketing initiatives and promotional campaigns aimed to spur further growth of the PRS industry.
COMPLAINTSANDENQUIRIES
To uphold investor protection, the SC has a structured process, system and dedicated resources to manage all complaints and enquiries received from the public.
The SC observed an increasing number of total complaints and enquiries in 2023, compared to the previous year. In 2023, the total number of complaints and enquiries received by the SC were 20% more than 2022. The increase of complaints and enquiries were mainly on scams and unlicensed activities (Table 20).
While the increase in the number of complaints and enquiries in these areas showed that there is greater awareness and scepticism among the public, the SC continued to increase its efforts to curb scams and unlicensed activities through adoption of a multi- pronged approach (Refer to Special Feature 1, Towards Greater Protection of Investors).
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