Page 62 - SC SCAR 2023 ENGLISH Flipbook

PART 2 REGULATORY PERFORMANCE AND OUTCOMES
Redress via Infringement Notices
In carrying out the SC’s surveillance, gatekeeping and supervisory functions, the SC also utilises its non- statutory enforcement tools, to address breaches of securities laws or guidelines that do not warrant the initiation of any formal enforcement actions.
In such instance, the SC may issue the following Infringement Notices to the relevant parties concerned:
obligations under the securities laws. Failure to comply with the Notice of Cease and Desist may attract formal enforcement action by the SC.
In 2023, 124 Infringement Notices have been issued by the SC, with the breakdown as in the Table 26. There has been an increase in the overall issuance of Infringement Notices by the SC from 2022 to 2023. This increase was partly attributable from various non- compliances detected by the SC against Shariah advisers under the SC’s Guidelines on Islamic Capital Market Products and Services. In addition, the SC also detected non-compliances by licensees under the requirements of the securities laws and the SC guidelines, particularly the Licensing Handbook.
TABLE 26
Type of Infringement Notices
•
•
•
•
Supervisory letters with infringement – issued pursuant to the exercise of the SC’s supervisory function or the conduct of an examination under section 126 of the Securities Commission Malaysia Act 1993 (SCMA).
Warning letters – issued pursuant to the discharge of the SC’s gatekeeping function such as the issuance of licences, approval of corporate proposals and review of prospectuses. Warning letters may be issued to licensed, registered persons or other professionals or experts.
Non-compliance letters – issued pursuant to the discharge of the SC’s gatekeeping function for minor breaches.
Notice of Cease and Desist – issued to immediately halt and prevent further violation of any
Type of Infringement Notices
No. issued
2023
2022
Supervisory letters with infringement
40
33
Warning letters
59
13
Non-compliance letters
20
24
Notice of Cease and Desist
5
6
TOTAL
124
76
60
SECURITIES COMMISSION MALAYSIA ANNUAL REPORT 2023