Kenyataan Media
BURSA MALAYSIA ISSUES REGULATORY FRAMEWORK TO ACCORD FLEXIBILITY FOR CLIENT ACCOUNT OPENING
Bursa Malaysia Securities Berhad (“Bursa Securities”) and Bursa Malaysia Depository Sdn Bhd (“Bursa Depository”) or collectively “Bursa Malaysia” today issued a new framework for opening of trading and securities accounts for both retail investors and corporate clients. The new framework provides greater flexibilities to Participating Organisations (“POs”) of Bursa Securities and Authorised Depository Agents of Bursa Depository (“ADAs”) in opening such accounts. POs and ADAs are now able to allow individual investors to open the accounts through electronic mediums. The amendments to the rules for this new framework have been approved by the Securities Commission and will take effect from 15 Jan 2015.
The Chief Executive Officer of Bursa Malaysia Dato’ Tajuddin Atan, said, “The objective of the new framework is to facilitate a simpler and smoother account opening process with proper checks in place to ensure the applicant’s identity and information are authenticated before the accounts are opened. The framework accommodates technological advancement and accords flexibility to POs/ ADAs to leverage on information technology. It enables adoption of internet based e-service applications to the extent that the POs/ADAs do not have to require the individual applicants to be present in person to open accounts. As for the corporate clients, they too will benefit from further reduction and standardisation in the documentation requirements for opening of accounts.”
With respect to individual investors, the process is simplified under the new framework where an individual investor may be afforded the option of completing and signing the account opening form and submitting the same to the PO/ADA together with the relevant supporting documents, in hard or soft copy (for example via electronic means) without the need to submit the form in person or sign it before an acceptable witness. The PO/ADA will then need to verify the identity of the individual and authenticity of the application using the methods prescribed by Bursa Securities.
In contrast, the current methods of verification for an individual seeking to open both a trading and securities account is to require such individual to be present in person before the PO/ADA to submit the account opening documents or to sign the account opening documents before an acceptable witness such as a notary public or a commissioner for oaths.
This flexibility is part of the ongoing initiative by Bursa Malaysia to facilitate electronic trading by the individual investors. In respect of corporate clients, the documentation requirements under the new framework have been further reduced and standardised for securities account opening by ADAs and for certain prescribed corporate clients the requirements for the opening of trading accounts by the POs have been further simplified and made more efficient.
For more information on the new regulatory framework for client account opening, please visit http://www.bursamalaysia.com/market/regulation/rules/bursa-malaysia-rules/securities/rules-of-bursa-malaysia-securities