Securities Commission Malaysia revises Guidelines on Recognized Markets

27 March 2024

On 6 February 2024, the Securities Commission Malaysia revised the Guidelines on Recognized Markets (“Guidelines”). The Guidelines were amended to facilitate the introduction of the Focused Scope Assessment approach, improve the compliance and governance requirements for recognised market operators, and ensure its requirements are aligned with the International Organization of Securities Commissions’ (IOSCO) principles and Financial Action Task Force recommendations.

The key amendments are as follows:

• New requirement to submit a validation by an independent third-party validator by applicants, introduction of the role of compliance officer, enhancements to the role of key persons and other requirements relating to governance and controls;
• Introduction of the categories of sophisticated investors as set out in the Guidelines on Categories of Sophisticated Investors; and

• Editorial amendments to enhance clarity and consistency.