September 6 2022

Have your say: new capital market risk management framework in Malaysia

Shearn Delamore & Co | Banking & Financial Services - Malaysia

Pamela Kung

Introduction
Purpose of proposed framework
Consultation paper


Introduction

On 1 August 2022, the Securities Commission Malaysia (SC) published a consultation paper, seeking the public's feedback on a proposed regulatory framework relating to the management of technology risks by the following capital market entities:

  • Bursa Malaysia Bhd and its subsidiaries;
  • the Federation of Investment Managers Malaysia;
  • the Private Pension Administrator Malaysia;
  • capital markets services licence holders;
  • recognised market operators;
  • registered persons under part 2 of Schedule 4 to the Capital Markets and Services Act 2007 (CMSA); and
  • capital market service providers registered under section 76A of the CMSA.

Purpose of framework

According to the SC, the proposed regulatory framework is intended to:

  • be two-pronged – that is:
    • for all capital market entities to have a robust and sound technology risk management framework that promotes strong oversight of technology risks; and
    • ultimately, for the capital market to be cyber resilient; and
  • subsume the current requirements in the Guidelines on the Management of Cyber Risk 2016, consolidate other requirements relating to technology risks management in the various guidelines issued by the SC and introduce new requirements.

The proposed regulatory framework is part of the SC's commitment to enhance governance and oversight of technology risks in capital market entities while further strengthening their technological resilience. The proposed regulatory framework aims to further improve capital market entities' ability and effectiveness in detecting and addressing a range of technology risks that is increasing due to:

  • the prevalent use of technology;
  • the emergence of new technologies; and
  • the growing sophistication of cyber threats.

Consultation paper

The consultation paper in relation to the proposed regulatory framework is available online. Interested parties and members of the public are welcome to submit their comments, feedback and queries to the SC by email by 19 September 2022.

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 www.shearndelamore.com.