Financial Services
10th Revision of the Guidelines on Recognized Markets
On 19 April 2023, the 10th Revision of the Guidelines on Recognized Markets was issued by the Securities Commission Malaysia (“SC”) which introduces a new chapter on requirements relating to application for certification in respect of tax exemptions for investment made in an investee company. There were also editorial amendments to enhance clarity in the Guidelines. The new additions to the Guidelines can be found in Chapter 18, Paragraphs 19.01 and 19.02, Appendix 2 and 3.
SC announces new E-Payment platform
The SC has announced a new electronic payment hub (“ePATH”) which has officially launched on 1 May 2023. Through e-PATH, the SC aims to provide a more seamless and secure way for market participants and the public to make online payments to the SC. The e-PATH link is https://path.sc.com.my/index.php.
SC allows Dealer's Representatives (“DR”) to expand scope and services
The SC has introduced a new framework which took effect on 14 April 2023 which allows DR to expand their scope and services beyond just dealing in securities. Examples of such activities that are being permitted are investment advice, financial planning, restricted dealing in unit trust and dealing in private retirement schemes.
In addition to the expansion, the new framework also removes the requirement for DR to be employed on a full-time basis. However, it is important to note that only DR who have been licensed for more than five years and meet the competency requirements for the relevant regulated activities may enjoy these new flexibilities.
The expansion of DR permitted activities is facilitated through amendments to Chapter 4 of the Licensing Handbook. There are a total of four new subparagraphs introduced in Chapter 4, namely, 4.05(11), 4.05(12), 4.05(13), and 4.05(14)
Additionally, a new table, i.e. Table 3A, was also introduced, which sets out the qualification, experience and licensing examination requirements for a DR looking to undertake additional regulated activities.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
