SC proposes reforms to boost framework for principal advisers

PETALING JAYA: Securities Commission Malaysia (SC) has released a consultation paper inviting feedback on an enhanced framework for principal advisers to expand the pool of qualified senior personnel and common standards for submission.
In a statement yesterday, SC said it is seeking responses from the public on several proposed enhancements, including providing clarity on the roles and responsibilities of qualified senior personnel (QSP) and approved principal advisers (APAs).
The consultation paper comes after a holistic review conducted last year on the 2009 principal adviser guidelines. SC had in April 2016 conducted a survey to identify the needs and concerns in the corporate finance industry. SC said it received feedback from 14 APAs on the matter.   
In addition, SC said bearing in mind the challenges faced by APA in increasing the number of QSP, the commission is proposing new eligibility criteria for registration of QSP, which includes admission of lawyers and reporting accountants with relevant experience as QSPs.
“These enhancements are in line with the SC’s efforts in promoting the quality of due diligence in corporate proposals submitted to the SC and the governance standards of industry gatekeepers in order to maintain the integrity of the capital markets and protect investors’ interests.
“To this end, the SC will also enhance its monitoring of QSP‘s continuous involvement in the preparation and submission of corporate proposals,” it added.
The public can view the full consultation paper on www.sc.com.my. Interested parties and the public are invited to review and submit their comments and feedback to feedbackPA@seccom.com.my before April 30, 2017.