The Securities Commission Malaysia (SC) has introduced a framework that will benefit dealer’s representatives (DRs) in the capital market. The new framework, which took effect on 14 April 2023, will allow them to expand their scope of activities and roles beyond just dealing in securities.
The SC recognises the importance of promoting competition and enhancing the quality of services in the capital market. In this regard, this framework will also provide DRs greater flexibility to develop their careers and meet the evolving needs of investors.
In addition to facilitating share transactions for their clients, DRs who meet certain requirements can apply for additional licenses to engage in a variety of activities, such as investment advice, financial planning, restricted dealing in unit trust and dealing in private retirement schemes. The new framework also removes the requirement for DRs to be employed on a full-time basis.
These flexibilities are only available to DRs who have been licensed for more than five years and meet the competency requirements for the relevant regulated activity. To ensure effective supervision and oversight of DRs performing these additional regulated activities, they are required to be undertaken within the same broking firm or within its group of companies.
The expansion of DRs permitted activities is facilitated through amendments to Chapter 4 of the Licensing Handbook. The Licensing Handbook and accompanying FAQ are available on the SC website here.
About the Securities Commission Malaysia
The Securities Commission Malaysia (SC), a statutory body reporting to the Minister of Finance, was established under the Securities Commission Malaysia Act 1993. It is the sole regulatory agency for the regulation and development of capital markets. The SC has direct responsibility for supervising and monitoring the activities of market institutions, including the exchanges and clearing houses, and regulating all persons licensed under the Capital Markets and Services Act 2007. More information about the SC is available on its website at www.sc.com.my. Follow the SC on twitter at @SecComMy for more updates.