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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.

Regulatory Principles

Regulatory Principles

We are guided by the following regulatory principles which are aimed at achieving our regulatory goals and ensuring a consistent and cohesive approach to our actions and decisions. These principles are also embedded in the rules and regulatory framework of Bursa Malaysia. The regulatory principles will ensure greater parity of regulatory actions across the different segments of parties regulated and overall greater effectiveness in Regulation.

The principles are as follows:-

  1. Clear and easily accessible rules and requirements
  2. No more regulation than necessary
    • Balance competing needs of regulation and business efficacy
    • Ensure costs and burden of regulatory compliance are proportionate to the benefits
  3. Principles-based approach where appropriate
    • Move towards a principles-based approach to regulation, where appropriate but issue guidance where necessary
  4. Outcome focused
    • Target outcomes through our regulatory actions or decisions rather than mere compliance with rules
    • Use discretion to modify or waive the rules, where the spirit of the rules can still be achieved, where the business can be facilitated without harming other stakeholders or where the burden of complying far outweighs the benefits
    • Always be guided by our regulatory objectives and the current regulatory concern
    • Consider the impact of our regulatory actions or decisions before and after taking each action or decision
  5. Innovative and competitive
    • Facilitate innovation, for example, by avoiding unreasonable restrictions on regulatees
    • Maintain the competitive position of Bursa Malaysia as an integrated exchange
  6. Risk-based approach
    • Emphasise on risk-based supervision rather than "one-size fits all" regulation
    • Facilitate early detection of problems, issues and trends, enabling prompt pre-emptive actions
  7. Values-based approach
    • Enforce the rules without fear or favour
    • Act professionally with integrity and fairness
    • Exercise our powers and discretion consistently whilst also considering the particular facts of each case and different points of view
    • Act swiftly, in a proactive manner
  8. Transparency
    • Make our regulatory approaches and processes more transparent
    • Communicate clearly and effectively about what we do
  9. Benchmarked and globally collaborative
    • Observe and benchmark to international standards and best practices
    • Create and maintain close co-ordination among both domestic and foreign regulators
  10. Consultative approach
    • Adopt a consultative approach and actively seek feedback from industry participants, other stakeholders and the public
    • Interact and leverage on relationships with stakeholders