KUALA LUMPUR (March 29): The Securities Commission Malaysia (SC) has issued the revised Guidelines on Conduct for Capital Market Intermediaries, aimed at elevating standards of professionalism and integrity of capital market intermediaries (CMIs) in the industry.

In a statement on Friday, the SC said the revised guidelines, among others, reinforce the role of a CMI’s board and senior management in inculcating a corporate culture where clients’ interests are prioritised.

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

The regulator said new chapters were 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.

SC chairman Datuk Seri Dr Awang Adek Hussin said the revised guidelines signify the SC’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.

“Fairness is a cornerstone principle, requiring CMIs to consider the client’s circumstances, including any vulnerabilities that the client may have, communicate clearly and ensure comprehension of product details and associated risks.

“When providing personal advice to a client, a CMI must exercise care, skill and diligence, and give due regard to the client’s interests.

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

Awang Adek said that in revising the guidelines, the SC has taken into account feedback from engagements with, among others, Bank Negara Malaysia, Federation of Investment Managers Malaysia and relevant capital market intermediaries.

The SC said the revised guidelines will come into effect on Oct 1, 2024 to allow sufficient time for CMIs to familiarise themselves with and make preparations to meet the new requirements of the revised guidelines.

https://www.theedgemarkets.com/node/706306