Malaysia
On 2 September 2024, the Securities Commission Malaysia (SC) announced that they recently hosted a workshop for the ASEAN Audit Regulators Group (AARG) and the Financial Statements Surveillance Group (FSSG) to strengthen audit quality and financial reporting compliance in the region. Attendees discussed regulatory issues related to the implementation of the new International Standard on Quality Management (ISQM) requirements, enforcement and communication strategies, and consistency in financial reporting, which is a common challenge across jurisdictions. For more information, please click here.
On 6 September 2024, the SC issued a caution to the public regarding a new investment scam that uses fake Information Memorandums (IMs) to induce individuals to invest. The IMs associated with this scheme falsely claim to have been lodged and endorsed by the SC. As a reminder, under the Capital Markets and Services Act 2007 (CMSA), unlisted public companies are required to lodge IMs with the SC within 7 days of their issuance. For more information, please click here.
On 11 September 2024, Labuan Financial Services Authority (Labuan), issued a press release informing the industry that the Guidelines on Labuan Money Broker Business have been revised. The aim is to strengthen the regulatory framework surrounding the money broking business, especially considering the evolving financial landscape driven by increased digitalisation in the financial services sector. Key aspects that have been strengthened are outlined in the press release. The key aspects strengthened are listed in the press release. For more information, please click here.
On 23 September 2024, the SC released a statement welcoming the Government’s announcement of the new Family Office incentive scheme, part of the incentive packages for the Special Financial Zone for Forest City. This incentive will allow for a 0% concessionary tax rate on eligible investments from Single Family Office Vehicles. The conditions and exemptions associated with the incentive can be found in the announcement. The SC aims to have the scheme operational by Q1 2025.For more information, please click here.
Enforcement
On 19 September 2024, the SC charged Ruwan Amaresh Shaun Ponniah (Ruwan) for defrauding investors into depositing RM201,000 for investment shares. He is charged under section 179(b) of the CMSA for providing false representations to individuals, claiming that he would invest in listed shares on both Malaysian and foreign exchanges. Additionally, Ruwan faces charges under section 58(1) of the CMSA for misrepresenting that he was conducting a business in fund management without the necessary licence. For more information, please click here.
This document is provided for information purposes only and does not constitute legal, tax, investment, regulatory, accounting or other professional advice. For more information on the legal and regulatory status of IQ-EQ companies please visit www.iqeq.com/legal-and-compliance.