Non-bank Financial Institutions Not Under SC’s Regulatory Framework - MOF
KUALA LUMPUR, Nov 3 (Bernama) -- Non-bank financial institutions (NBFIs) do not fall under the regulatory framework of the Securities Commission Malaysia (SC), the Ministry of Finance (MOF) said.
NBFIs include the Armed Forces Fund Board (LTAT), Employees Provident Fund (EPF), Retirement Fund (Incorporated) (KWAP), Social Security Organisation (SOCSO) and Amanah Raya Bhd.
The ministry said the corporate governance and management of these institutions are governed by their respective acts and relevant governance frameworks.
“However, NBFIs are encouraged to refer to the Malaysian Code on Corporate Governance (MCCG) and the Malaysian Code for Institutional Investors, which set out corporate governance principles that take into account international practices and globally accepted principles,” stated MOF.
The ministry was responding to Datuk Seri Dr Wan Azizah Wan Ismail (PH-Bandar Tun Razak) on measures to regulate corporate governance and prudential management among NBFIs through the SC.
MOF said that although LTAT is not fully subject to SC supervision, its investment activities and corporate transactions involving listed companies are subject to the SC's regulatory requirements.
These include takeovers, mergers and mandatory acquisitions.
LTAT also works closely with the SC to ensure that related transactions comply with the laws and regulations in force.
As for the EPF, its investment activities in the domestic capital market are carried out in accordance with the laws, regulations and market standards set by the relevant authorities, including the Capital Markets and Services Act 2007 and the SC's guidelines.
Meanwhile, the SC's oversight of Amanah Raya Bhd is limited to the capital market activities of its subsidiaries, including AmanahRaya Trustees Bhd, AmanahRaya-Kenedix REIT Manager Sdn Bhd and AmanahRaya Investment Management Sdn Bhd.
The ministry said the registration, licensing and compliance framework supported prudential management, accountability and the protection of customers' and investors' interests.
KWAP, meanwhile, has a comprehensive governance framework that also takes into account corporate governance best practices, including the principles outlined in the MCCG.
-- BERNAMA