Companies Commission of Malaysia (CCM) – The Companies Commission of Malaysia (CCM) is a new body which was launched on April 16, 2002 arising from the merger of the Registry of Companies (ROC) and Registry of Business (ROB). CCM assumes the roles and responsibilities of the ROC and ROB but has autonomy in the administration of its finances and in human resource planning. CCM has powers of administration and enforcement over the Companies Act 1965, Trust Companies Act 1949, Kootu Funds (Prohibition) Act 1971, Business Registration Act 1965 and all subsidiary legislation enacted under these Acts.
The Foreign Investment Committee (FIC) – Formed in 1974, the FIC implements government guidelines to regulate the acquisition of assets or interest, mergers or take-overs of companies and businesses, and is responsible for major foreign investment issues.
The Securities Commission (SC) – The SC was set up under the Securities Commission Act 1993 and began operations on March 1, 1993. The SC has a very wide scope, encompassing all aspects of the securities industry, including advising the Minister of Finance (MoF) on all matters relating to securities and futures contracts industries.
The Licensing Officer/The MoF– The licensing officer is appointed by the MoF and is responsible for the issue of the relevant licenses under the Securities Industry Act 1983 and the Futures Industry Act 1993.
Bank Negara Malaysia (BNM) (the central bank) – In addition to conventional Central Bank functions, BNM is also entrusted with the role of administering and implementing the Banking and Financial Institutions Act 1989 (BAFIA). BAFIA is the primary legislation governing all commercial banks including those providing custodial services.
BNM owns and operates the Scripless Securities Trading System (SSTS) which effects and records movement and settlement of all Malaysian government securities and scripless private debt securities between participating institutions of the SSTS, or between the members and BNM. Securities eligible through the SSTS, collectively known as SSTS Securities, include Malaysian Government Securities, Cagamas bonds, MTBs, BNM Bills, Government Investment Certificates and BNM Certificates.
The securities industry in Malaysia is governed by:
* Securities Industry Act 1983
* Securities Industry (Central Depository) Act 1991
* Securities Commission Act 1993
* Companies Act 1965
* Securities Industry (Central Depositories) (Foreign Ownership) Regulations 1996
* Securities Industry (Reporting of Substantial Shareholding) Regulations 1998
* Banking and Financial Institution Act 1989
These laws seek to develop and manage a healthy capital market and economy, as well as protect investors’ interests.