Page 57 - SC Annual Report 2018 (ENG)

Securities
Commission
Malaysia
ANNUAL
REPORT
2018

thematic review on Supervision and Management of remisiers

BAckGRound SuPERVISoRy ouTcoME

Remisiers’ remuneration are directly tied to the volume Issue a report on industry best practices and
of transactions they execute. Hence, there is a risk that guidance to the board and senior management
remisiers may not act in the best interest of their clients in of intermediaries.
their efforts to maximise brokerage generated.
Intermediaries were required to ensure that
A thematic review was conducted to evaluate the remisiers are provided with continuous
adequacy and effectiveness of intermediaries’ supervision training to maintain a culture that promotes
and management of remisiers. professionalism and ethical behaviour.

oBSERVATIonS

• Arising from supervisory issues raised by the SC from earlier examinations, the board and senior management of
intermediaries have generally strengthened their oversight and functional governance structures as well as the
relevant policies and procedures. Monitoring mechanisms are also in place to ensure the interest of clients are
protected. Investors should however continue to closely monitor the performance of their investments.

• Intermediaries’ remuneration structure for their remisiers is aligned with fair treatment of investors.

• Intermediaries generally display ability to identify and address issues brought forward by clients in a prompt
manner through effective escalation and reporting framework.

• Sufficient internal reporting structures have been established to report misconduct with designated internal
committees comprising senior management personnel tasked to deliberate on issues and take appropriate
remedial action.

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