CEO Morning Brief

SC Will Not Hesitate to Take Criminal Action Against 'bad Actors' in Capital Market, Says Chairman

Publish date: Fri, 01 Dec 2023, 08:47 AM
0 18,803
TheEdge CEO Morning Brief
Photo by Sam Fong/The Edge

KUALA LUMPUR (Nov 30): The Securities Commission Malaysia (SC) said it will not tolerate any non-compliance by capital market players, and will not hesitate to take criminal action against those involved in fraudulent activities.

Its chairman Datuk Seri Dr Awang Adek Hussin said the SC will “enforce stronger supervisory actions against intermediaries lacking proper internal controls, indirectly allowing fraudulent activities to compromise the integrity of the capital market”.

He said the SC is committed to working hand in hand with the Federation of Investment Managers Malaysia (FIMM) to achieve the objective, and promote trust in the capital market.

"As a self-regulatory organisation, the FIMM must hold 'bad actors' accountable. You cannot and should not tolerate any fraud. Unit trust consultants (UTCs) siphoning money, especially from vulnerable investors, will hurt the trust and reputation of our industry, and affect our efforts to develop the market," he said.

In his speech at the FIMM's 30th Anniversary Dinner 2023 on Wednesday night, Awang Adek said the capital market will not grow once investors lose confidence in the market and the safety of their investments.

As such, the FIMM also must enforce its code of ethics to instil a good culture of compliance, integrity and honesty among its members, he said.

He said it is important to prioritise investor protection and accountability, and ensure all systems and procedures are in place to prevent fraudulent activities.

"To earn the trust and faith of investors, people who sell capital market products must be honest, trustworthy and transparent.

“I believe this is in line with the FIMM’s code of ethics, which stresses how important it is for UTCs to uphold the highest levels of professionalism and ethical conduct," he said.

Awang Adek said the FIMM needs to have the right processes and procedures in place to monitor and supervise the UTCs in order to protect legitimate investments, and prevent illegal activities such as money laundering.

In conclusion, he noted the asset management industry's strong growth for the past 20 years, which saw the assets under management increase 12-fold, reaching RM964.8 billion as of August 2023, up sharply from a modest RM79 billion in 2003.

Read also:
FIMM reprimands 15 unit trust scheme, private retirement scheme consultants for misconduct

Source: TheEdge - 1 Dec 2023

Be the first to like this. Showing 0 of 0 comments

Post a Comment