Page 92 - CMP3

This will also require greater development of shared understanding with the regulated entities in respect of the principles under such regulatory approach. At the same time, the SC will also re-evaluate how it engages market participants, how regulatory objectives are communicated, how consistency is ensured across the regulatory value chain as well as how its supervisory capability and capacity will be developed.
4.1.5 ENHANCING THE TRANSPARENCY OF THE SC’S REGULATORY APPROACH
As the SC’s regulatory approach shifts towards greater adoption of principles-based regulations and self-regulation, there is a need for greater transparency on the SC’s expectations on intermediaries and members of the public at large across its supervision, authorisation and enforcement actions.
The SC is committed to enhance the transparency of the regulatory approach and conduct regular communications on regulatory expectations. Having greater disclosures on regulatory principles, approach, objectives, priorities and key dimensions of the decision-making frameworks will give regulated entities greater clarity on regulatory expectations. This will also provide firms with greater guidance and understanding on regulatory changes and actions.
Diagram 18
GREATER TRANSPARENCY ACROSS THE REGULATORY VALUE CHAIN
Authorisation Supervision Enforcement
Source: SC.
4.2 PRIORITISING EFFICIENCY AND OUTCOMES
The capital market is constantly evolving, and thus, the delivery of services, development of products and innovation of businesses will also change over time. These changes, while enabling value-added propositions, also introduce new challenges and vulnerabilities for investors, especially against the backdrop of changing population demographics. To uphold the mandate of investor protection, the SC’s regulatory approach will also need to continuously adapt. Moving forward, the SC will place emphasis on the identification and assessment of vulnerable investors. Simultaneously, the SC will also refine its regulatory approach to better supervise, identify and address capital market transgressions, to ensure more effective deterrence against market misconduct. This section discusses the SC’s priorities over the next five years to enhance its regulatory approach, including the efficiency and effectiveness of its supervisory and enforcement functions, to maintain a fair and orderly market and promote investor confidence.
Enhancing the transparency of authorisation processes to make firms more aware of the SC’s expectations
Improving compliance of firms and keeping market stakeholders informed of the SC’s supervisory approach, priorities and progress
Shaping market behaviour and enabling the public to understand the enforcement approach and priorities of the SC
90 SECURITIES COMMISSION MALAYSIA