Malaysia setting up regulatory subsidiary of Bursa Malaysia in move to enhance governance

The Securities Commission Malaysia and Bursa Malaysia are setting up a subsidiary to take on the regulatory functions currently performed by the stock exchange.

The two authorities said in a statement on Tuesday (Feb 25) that the move is in line with enhancing the governance structure of Bursa Malaysia by segregating its regulatory functions from its commercial objectives.

Bursa RegSub is expected to start operating by the end of 2020.

The wholly-owned subsidiary of Bursa Malaysia will be governed by a board of directors, the majority of whom will be independent of the stock exchange, and the chairperson of the new subsidiary will be appointed from amongst the independent board members.

Bursa Malaysia will remain accountable to the Securities Commission.

“The SC will continue to regulate Bursa Malaysia directly as a listed company as well as a market operator while maintaining oversight of the regulatory functions performed by Bursa RegSub,” said Datuk Syed Zaid Albar, chairperson of the Securities Commission.

As Malaysia’s stock exchange, Bursa Malaysia is the frontline regulator of the country’s capital market. Its current regulatory functions are performed and managed by its Regulation Functional Group helmed by the Chief Regulatory Officer.

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