SC Malaysia allows distribution of capital market products via e-service platforms

The Securities Commission Malaysia (SC) on Tuesday said it will facilitate the online distribution of capital market products such as unit trusts, through e-services platforms like e-wallet or e-payment service providers.

“The Guidelines on Recognised Markets have been amended to introduce a new chapter on ‘e-Services platform’, which contains the registration requirements and ongoing obligations for e-Service providers,” the regulator said in a statement.

This amendment will allow operators of e-wallet or e-payment applications to partner with Capital Markets Services Licence holders to distribute products to investors.

E-wallets or e-payment operators that are currently subject to the oversight of another sectoral regulator will be required to obtain the prior approval from the said regulator before submitting their application to the SC, it added.

‘‘The SC will continue to facilitate the development of innovative digital solutions to improve access to investments for all participants of the Malaysian capital markets. The introduction of the e-Service platform framework will facilitate the wider distribution of capital market products through digital platforms which are already familiar to our investors,” said SC chairman Datuk Syed Zaid Albar.

The SC had stated earlier that it observed an increase in the number of online trading accounts being registered. At the same time, there has also been a shift among licence holders towards using digital channels to distribute capital market products and services.