SC Malaysia Fast Tracks Market Entry Process for Capital Market Players

SC Malaysia Fast Tracks Market Entry Process for Capital Market Players

by February 6, 2024

The Securities Commission Malaysia (SC) has stepped up to expedite the market entry process for Capital Market Intermediaries (CMIs) and Recognised Market Operators (RMOs).

The Focused Scope Assessment (FSA), effective immediately, promises to reduce the time required for CMIs and RMOs to enter the market to just three months, a major improvement from the previous timeframe of over six months.

This move is part of the SC’s broader strategy to adapt to the capital market’s increasing maturity and the evolving landscape of regulatory standards.

By implementing the FSA through amendments to the Guidelines on Recognised Markets, the SC is introducing a more targeted and efficient evaluation of applicants’ operational and regulatory readiness.

A key aspect of the FSA is the requirement for applicants to engage an independent party to validate their business policies and procedures.

This step is designed to ensure applicants maintain high levels of efficiency and readiness to meet regulatory requirements for conducting regulated activities.

Despite these streamlined processes, the SC emphasises its continued commitment to thorough assessments in critical areas such as fit and properness, governance, and risk management.

Amendments to the Guidelines on Recognised Markets have also been made to ensure a level playing field for all RMOs, including new equity crowd funding operators, which now face a capital requirement of RM5 million.

The revisions further enhance measures against financial crimes, including money laundering and terrorist financing, underscoring the SC’s dedication to maintaining the integrity of Malaysia’s financial markets.

Dato’ Seri Dr. Awang Adek Hussin

Dato’ Seri Dr. Awang Adek Hussin

The SC Chairman Dato’ Seri Dr. Awang Adek Hussin said,

“The fundraising and investment channels via the private market had been on a steady growth for micro, small and medium enterprises (MSMEs) to tap into funds for their expansion plans. As at Q3 2023, the equity crowdfunding (ECF) and peer-to-peer (P2P) platforms have collectively raised approximately RM5.9 billion, benefiting almost 10,000 MSMEs. This commitment to develop a more progressive and robust regulatory framework reflects the SC’s recognition of the crucial role these businesses play in driving the nation’s growth and development.”




Featured image credit: Edited from Freepik