Page 52 - SC Annual Report 2018 (ENG)

Securities
Commission
Malaysia
ANNUAL
REPORT
2018

In 2018, the SC also issued a cautionary statement The SC and China’s Ministry of Finance (MOF China)
on pump-and-dump activities to raise public signed a Memorandum of Understanding (MOU) on
awareness on the questionable motives and mode 20 August 2018 to facilitate cross-border regulatory
of operations behind such schemes. The public was co-operation on accounting and audit matters.
also reminded to be vigilant and take steps to verify Signatories were MOF China Minister Liu Kun and
stock promotions on blogs, chat forums and social the former SC Chairman, Tan Sri Dato’ Seri Ranjit
media platforms. Ajit Singh. The signing ceremony was witnessed
by the Prime Minister of Malaysia, Tun Dr Mahathir
Mohamad and the Premier of the People’s Republic
Strengthening cross-border surveillance of China, Li Keqiang.
collaboration

Cross-border collaboration with foreign regulators Reinforcing good conduct among
is critical to support the SC’s surveillance efforts intermediaries
to detect or prevent corporate transgression by
parties outside Malaysia. The SC’s ability to obtain The SC employs a wide range of supervisory tools
and share information with international regulatory encompassing structured assessments, thematic
counterparts through the IOSCO Multilateral reviews and for-cause assessments to ensure that
Memorandum of Understanding (MMoU) has intermediaries adhere to standards of business
strengthened its enforcement capabilities and reach conduct and assess the soundness of their
in dealing with cross-border market misconduct. operational and prudential framework. In 2018,
the SC conducted supervisory assessments on 138
intermediaries.

Diagram 5
Supervisory tools and objectives

Supervisory Tools objectives

For-cause assessments Prevention
• Cases that arise from supervisory concerns Effective oversight for preventive
or complaints action
• Engage the intermediaries to further
investigate the issues

Structured assessments detection
• Regular periodic review Identification of non-sustainable
• Assess specific areas trends and potential vulnerabilities
• Verification of systems, processes or controls
continuous off-site monitoring Intervention
• Systematic analysis of info / data to identify Timely intervention to prevent
emerging risks the escalation of breaches and
• Desktop review of policies & procedures manage risk

42 | PART 2 »» SHAPING MARKET CONDUCT

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