Regulatory Approach / Philosophy
In striving to build a market of quality and integrity, Bursa Malaysia is guided by Regulatory Principles to achieve the following goals: investor protection to remain intact; high standards of business conduct by listed issuers and brokers; and efficient and effective regulation.
Managing Conflicts of Interest
A well regulated market with orderly and efficient clearing and depository services is essential to enable Bursa Malaysia to meet both its corporate and regulatory objectives and to engender confidence in Bursa Malaysia. As both a market regulator and a business-oriented entity, Bursa Malaysia may be faced with situations where its commercial interests may conflict with its regulatory interests (“COI”). Under the law, Bursa Malaysia is obliged to ensure that where Bursa Malaysia’s own or any other interest conflicts with public interest, public interest and in particular the need for investor protection, shall prevail.
The measures we have put in place to address COI are:
- Separation of the regulatory functions from the commercial functions to ensure that these functions operate independently; and that business units within Bursa Malaysia are not in a position to influence any supervisory or regulatory decisions made by Regulation
- Establishment of the COI guidelines which stipulate the framework and appropriate controls and measures to ensure systematic identification and management of COI in an effective and timely manner
- Establishment of Regulatory Committees to make significant regulatory decisions; the members of which are appointed by the Board and consist of individuals from various professional and industry participants
- Review by Audit Committee of Bursa Malaysia on all COI situations
- Reporting to the Board on regulatory matters on a regular basis
- External oversight by the Securities Commission where the Securities Commission shall take all actions and make all decisions in relation to Bursa Malaysia as a listed issuer which includes monitoring compliance and taking enforcement action involving Bursa Malaysia