Securities Commission to Allow for E-Wallets to Sell Capital Market Products; TNG eWallet Welcomes the Moveby Fintech News Malaysia May 5, 2020
The Securities Commission Malaysia (SC) announced today that it will facilitate the online distribution of capital market products such as unit trusts, through e-Services platforms like e-wallet or e-payment service providers.
The Guidelines on Recognized Markets has been amended to introduce a new chapter on “e-Services platform”, which contains the registration requirements and ongoing obligations for e-Service providers.
This amendment will allow operators of e-wallet or e-payment applications to partner with Capital Markets Services Licence holders to distribute capital market products to investors. E-wallets or e-payment operators which are currently subject to the oversight of another sectorial regulator will be required to obtain the prior approval from the said regulator before submitting their application to the SC.
Datuk Syed Zaid Albar, Chairman of the SC said,
‘‘The SC will continue to facilitate the development of innovative digital solutions to improve access to investments for all participants of the Malaysian capital markets. The introduction of the e-Service platform framework will facilitate the wider distribution of capital market products through digital platforms which are already familiar to our investors,”
Welcoming the move, Ignatius Ong, CEO, TNG Digital who operates one Malaysia’s most popular e-wallet brands said,
“As a brand that champions digital inclusivity for our users from all walks of life, we are pleased with the Securities Commission’s move to allow players such as Touch ‘n Go eWallet, the leading e-wallet in Malaysia to officially offer financial products. We will be rolling out a suite of financial management products soon that will enable us to build financial resilience and literacy for the masses. Our 10million strong users from various financial capabilities will now have the opportunity to navigate and manage their finances through a platform like Touch ‘n Go eWallet.”
The SC had stated during its virtual press conference held on 16 April 2020 that it observed an increase in the number of online trading accounts being registered. At the same time, there has also been a shift among licence holders towards using digital channels to distribute capital market products and services.
Interested operators will have to register with the SC as a recognized market operator (RMO) and may submit their applications from today onwards.