Page 65 - SC Annual Report 2018 (ENG)

Securities
Commission
Malaysia
ANNUAL
REPORT
2018

enforcement jurisdiction of FIMM such as breaches with the Guidelines on Recognized Markets. The SC
of securities laws and fraud. Enhanced referral leverages its periodic engagements with operators to
processes and procedures were also put in place to exchange views on trends and developments in the
ensure more timely and efficient case management industry, clarify regulatory issues and communicate
as well as effectiveness of enforcement actions. supervisory expectations related to products offered,
fundraising campaigns and disclosure practices.

oversight of Private Pension In 2018, engagements focused on deepening the
Administrator industry’s understanding of anti-money laundering
(AML) regulatory requirements and ensuring
Private Pension Administrator (PPA) plays a key role operators have sufficient controls in meeting the
as the central administrator for PRS, providing AML requirements, particularly on the soundness of
record-keeping and electronic PRS services such as know-your-customer (KYC) assessment during
PRS member enrolment, unit top-up of member’s onboarding of issuers and investors. Supervisory
contribution, withdrawal and beneficiary nomination. oversight also included emphasis on the resilience of
Efficiency and continuity in the operations of PPA are operators’ IT systems and infrastructure, given the
therefore critical to the PRS industry. importance of these infrastructure in supporting
fund-raising campaigns and information held by
The SC’s oversight of PPA continues to focus on operators such as issuers and investors’ details and
ensuring the efficiency and robustness of PPA’s securities data. ECF and P2P operators were required
operational and risk management practices in to participate in cyber drill exercises organised by the
discharging its central administration function. SC as part of cyber threat preparedness.
In 2018, the SC facilitated the introduction of
additional PRS electronic services, including the PRS The SC also emphasised the role of platform
online enrolment and the MyPPA mobile application operators in enhancing investors’ awareness of
that would enable greater public access to PRS. the risks, rights and obligations attached to their
Supervisory priorities were focused on ensuring that investments as well as the issuers’ understanding of
PPA has put in place systems security and controls, these alternative financing channels.
system readiness testing prior to the introduction
of new electronic services, business continuity
arrangements including setting up a data recovery EMPoWERInG InVESToRS
centre and business continuity testing as well as
safeguards to protect confidentiality of members’ The SC continues to take measures to ensure
personal data. investors are protected, empowered and able
to make informed investment decisions. Critical
components of the SC’s investor protection
Focused engagement with equity mandate are implemented through the Securities
crowdfunding and peer-to-peer Industry Dispute Resolution Centre (SIDREC) that
financing operators provides investors access to redress mechanisms
in the event of a dispute, and the SC’s ongoing
As equity crowdfunding (ECF) and peer-to-peer (P2P) investor education efforts through InvestSmart an
®
financing are relatively new segments in the capital investor empowerment initiative to increase investor
market, the SC’s priority for supervisory oversight awareness and knowledge of the capital market.
on ECF and P2P operators is to ensure compliance

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