The Securities Commission Malaysia (SC) revised the Guidelines on Recognised Markets with effect from 15 November 2022.

The following are some of the amendments by the SC:

  • Recognised market operators (RMOs) must now:
    • seek the SC's prior approval if a proposed change of their shareholding will result in the change of their controller (as defined in the Capital Markets and Services Act 2007); and
    • notify the SC at least 14 days before effecting any change in shareholders, directors or other person responsible.
  • Peer-to-peer (P2P) financing platform public-listed companies and their subsidiaries are now permitted issuers to be hosted on a P2P platform.
  • Regarding digital asset exchange (DAX):
    • a new digital broker model (ie, a DAX operator acting as a counterparty to an investor for every buy or sell order on or through its platform) has been introduced. This includes requirements relating to eligibility, financial and settlement arrangements;
    • the requirements relating to the management of conflict of interests by a DAX operator have been expanded;
    • the approval requirement in respect of digital assets with a concurrence framework has been replaced; and
    • existing DAX operators now required to obtain the SC's prior approval to operate any other DAX models.
  • Guidelines on e-services platforms have been provided.
  • The class of investment products that can be offered on e-services platforms has been expanded to include products offered by any other RMOs.
  • A new obligation to obtain prior authorisation from a relevant sectorial regulator to offer a non-capital market product has been created.

For further information on this topic please contact Pamela Kung at Shearn Delamore & Co by telephone (+60 3 2027 2911) or email ([email protected]). The Shearn Delamore & Co website can be accessed at