The Securities Commission of Malaysia has introduced a new rule favouring the representation of capital market dealers. The new regulation, which came into effect on April 14, 2023, allows dealer representatives to expand the scope of their activities and roles beyond just trading securities.

The Securities Commission Malaysia recognises the importance of promoting competition and improving the quality of services in the capital markets. In this regard, this framework will also provide greater flexibility for dealer representatives to grow their businesses and meet the changing needs of investors.

In addition to facilitating stock trading for clients, representatives of dealers who meet certain requirements can apply for additional licences to engage in various activities such as investment advisory, financial planning, restricted trading of unit trusts and private retirement plan trading. The new rules also remove the requirement that dealer representatives be employed full-time.

The new rules will only apply to representatives of traders who have been licensed for more than five years and meet the competency requirements for the relevant regulated activity. To ensure effective supervision and monitoring of dealer representatives engaged in these additional regulated activities, the new rules require them to provide services within the same broker or its group of companies.