Securities Commission Issues Revised Guidelines on Conduct for Capital Market Intermediaries

The Securities Commission Malaysia (SC) today issued the revised Guidelines on Conduct for Capital Market Intermediaries, aimed at elevating the standards of professionalism and integrity of capital market intermediaries (CMIs) in the industry.

It said the revised guidelines, among others, reinforce the role of a CMI’s board and senior management in inculcating a corporate culture that prioritises clients’ interests.

“The guidelines also clarify the SC’s expectations on CMIs’ duty to act honestly and fairly as well as avoid misleading and deceiving its clients under any circumstances.

“New chapters are introduced to address crucial areas such as treatment of vulnerable clients, as well as provision of personal advice and capital market-related services including through online platforms,” it said in a statement.

SC chairman Datuk Seri Awang Adek Hussin said the revised guidelines signify the commission’s efforts towards fostering trust, integrity and client-centricity in the capital market industry by, among others, minimising the risk of mis-selling, avoiding reputational damage, reducing complaints, and improving client retention.

“We are confident that these enhancements will not only elevate standards but also reinforce investor confidence in our capital market,” he added.

The revised guidelines will come into effect on October 1, 2024, to allow sufficient time for the CMIs to familiarise and prepare to meet the new requirements of the revised guidelines. ― Bernama