KUALA LUMPUR, February 6 — In light of the capital market’s growing maturity and evolving regulatory standards, the Securities Commission Malaysia (SC) today introduced the Focused Scope Assessment (FSA) for new eligible Capital Market Intermediaries (CMIs) and Recognised Market Operators (RMOs) as part of the regulator’s new gatekeeping approach.
SC chairman Datuk 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 the third quarter of 2023 (3Q 2023), the equity crowdfunding (ECF) and peer-to-peer (P2P) platforms have collectively raised about 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,” he said in a statement today.
SC said the FSA which takes effect immediately via amendments to the Guidelines on Recognised Markets, evaluates the applicant’s operational and regulatory readiness in a more targeted and efficient manner besides shortening the time to market for CMIs and RMOs to three months, where previously it could take more than six months.
The FSA will also require applicants to have an independent party validating their business policies and procedures as part of their submission to the SC. This will give the applicant more control in ensuring efficiency and encouraging readiness to observe the requirements to undertake a regulated activity.
The revised Guidelines on Recognised Markets that will facilitate the FSA are available at https://www.sc.com.my/regulation/guidelines/recognizedmarkets
— Bernama
