Securities Commission Malaysia (SC)
Oversees Malaysia’s capital markets including securities and investment funds.
Tags:Forex RegulationBasic Information
The Securities Commission Malaysia (SC), known as Suruhanjaya Sekuriti Malaysia in Malay, is a self-funded statutory body established on 1 March 1993 under the Securities Commission Act 1993. Headquartered in Bukit Kiara, Kuala Lumpur, it operates independently to regulate and develop Malaysia’s capital markets, including equities, bonds, sukuk, derivatives, and forex-related activities.
Historical Background
The SC was formed to consolidate regulatory oversight of Malaysia’s rapidly growing capital markets. Before its establishment, capital market supervision was fragmented across multiple entities. The SC unified these functions, adopting international best practices while tailoring regulations to Malaysia’s financial landscape. Over the years, it has introduced key initiatives such as the Electronic Share Payment system and the Finance Accreditation Agency to enhance market efficiency.
Legal Authority and Regulatory Framework
The SC derives its authority from several key legislations:
- Securities Commission Act 1993 (SCA): Establishes the SC’s governance structure and mandates.
- Capital Markets and Services Act 2007 (CMSA): Provides the legal basis for regulating securities, derivatives, and forex trading activities.
- Securities Industry (Central Depositories) Act 1991: Governs securities depository operations.
Additionally, the SC enforces specialized guidelines such as the Guidelines on Digital Assets and the Guidelines on Regulatory Sandbox to adapt to evolving financial technologies.
Core Responsibilities and Regulatory Scope
The SC’s regulatory functions encompass:
- Market Supervision: Monitoring exchanges, clearing houses, and licensed entities to ensure compliance.
- Investor Protection: Enforcing fair trading practices and combating financial fraud.
- Licensing & Enforcement: Authorizing financial intermediaries, including forex brokers, and taking action against unlicensed operators.
- Policy Development: Formulating regulations to foster innovation while mitigating systemic risks.
- Corporate Governance: Overseeing mergers, takeovers, and corporate disclosures to maintain market integrity.
Contact Information
For inquiries, the SC can be reached through the following channels:
- Address: Securities Commission Malaysia, Bukit Kiara, Kuala Lumpur, Malaysia.
- General Line: +603-6204 8000
- General Email: [email protected]
- Investment Scam Hotline: 0362048999 (for verifying licensed entities).
How to Verify a Regulated Entity
To check if a forex broker or financial service provider is licensed by the SC:
- Visit the SC’s official Investment Checker portal.
- Search by the entity’s name, registration number, or license type.
- Review the status (e.g., “Valid” or “Revoked”) and permitted activities.
- For further confirmation, contact the SC via phone or email.
