Thursday 28 Mar 2024
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KUALA LUMPUR (May 5): The Securities Commission Malaysia (SC) says it will facilitate online distribution of capital market products, such as unit trusts, through e-services platforms like e-wallet or e-payment service providers.

This follows the amendment to the SC’s Guidelines on Recognised Markets which now include a new chapter on e-service platforms. The chapter details 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,” the SC said in a statement today.

The commission said e-wallet or e-payment operators, which are currently subject to the oversight of another sectorial regulator, will be required to obtain that regulator’s approval before submitting their application to the SC.

SC chairman Datuk Syed Zaid Albar said the commission will continue to facilitate the development of innovative digital solutions to improve access to investments for all participants of Malaysia's capital market.

“The introduction of the e-service platform framework will facilitate wider distribution of capital market products through digital platforms already familiar to our investors,” he added.

During a virtual press conference held on April 16, the SC said there had been an increase in the number of online trading accounts being registered.

At the same time, it said there had 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 recognised market operators and may submit their applications from today onwards,” it added.

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