Covid-19: Securities Commission announces further relief measures for capital market participants

On 24 March 2020, the Securities Commission Malaysia (SC) announced the following measures to assist capital markets participants weather the financial havoc wreaked by the Covid-19 outbreak and the movement control measures implemented in Malaysia –
  • waiver of the SC’s annual licensing fees for 2020 on the core regulated activity of all Capital Markets Services Licence (CMSL) entities with Profit Before Tax of RM5 million or less during Financial Year 2019;
  • waiver of the annual licensing fees for 2020 for all individual CMSL holders and Capital Markets Services Representative’s Licence (CMSRL) holders;
  • reduction of the minimum Continuing Professional Education (CPE) requirements to 10 CPE points from the current 20 CPE points effective 1 July 2020 for a period of 12 months for all CMSRL holders and Employees of Registered Persons;
  • reduction of the minimum training requirements to three days from the current five days effective 1 July 2020 for a period of 12 months for Trading Representatives and Marketing Representatives; and
  • one-off training subsidy of up to RM30,000 per firm for existing registered firms of Audit Oversight Board with less than 10 audit partners for Approved Training Programmes conducted by the Malaysian Institute of Certified Public Accountants.
A qualifying CMSL entity and a qualifying CMSRL holder who has paid their respective licence fees for 2020 will be offered a credit to offset their licensing fees for 2021.
According to the SC, the relief measures announced on 24 March 2020 will benefit 231 licensed entities, 9,663 licensed individuals and 30 registered audit firms.
This relief package is in addition to the regulatory flexibilities announced by the SC on 20 March 2020. Our Alert on the SC’s earlier announcement is available here.