Friday 29 Mar 2024
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KUALA LUMPUR (Oct 14): The Securities Commission Malaysia's (SC) decision to suspend the New Capital Markets Services Representative’s Licence (CMSRL) of Inter-Pacific Asset Management Sdn Bhd (IPAM) executive director and fund manager Datuk Nazri Khan Adam Khan for six months is appropriate, said the commission’s chairman Datuk Seri Dr Awang Adek Hussin.

"We need to gather evidence and cannot take action arbitrarily that causes disruption to the market. We have to make sure the evidence is clear and real to take action.

"The action taken by the SC is appropriate. We have studied and evaluated the evidence and so forth,” the SC chairman told reporters at the 9th InvestSmart Fest 2022 on Friday (Oct 14).

Nazri Khan's licence was suspended by the SC effective Oct 6.

In a statement on Wednesday (Oct 12), IPAM's management said it is appealing against the suspension, saying the suspension was due to administrative breaches and not its fund management.

Awang Adek, meanwhile, affirmed that the SC has been taking all the necessary precautions, besides going thorough investigation processes, before taking any action such as suspending Nazri Khan's licence.

He added that the SC was not able to comment on the matter further, given that it is ongoing, with Nazri Khan having the opportunity to appeal.

Under the Capital Markets and Services Act 2007 (CMSA), anyone who wishes to carry out capital market activities (except a registered person) is required to be appropriately licensed. 

Under the CMSA's single licensing regime, capital market intermediaries that are fit and proper are issued with only one licence that enables them to carry on one or more regulated activities.

There are two main types of licensing applications, namely the New Capital Markets Services Licence (CMSL), which is granted to a principal, while the second is the CMSRL, which is granted to a representative to enable him or her to carry on any one or more regulated activities on behalf of the principal.

The SC is the sole licensing authority that approves licences for capital market intermediaries to be engaged in regulated activities.

It is also entrusted with the responsibility of ensuring an efficient and transparent licensing process, and that the licensed intermediaries and representatives are competent and proficient in providing their services to investors.

Edited BySurin Murugiah & Lam Jian Wyn
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