Malaysians will soon be able to purchase investment products, such as unit trusts, on online platforms such as e-wallet and e-payment service providers. This comes after the Securities Commission Malaysia (SC) announced that capital market products can now be sold through e-service platforms, although these platforms must first apply to become recognised market operators (RMO).
Accordingly, the SC has updated the Guidelines on Recognised Markets with a new chapter on e-service platforms to assist with this move. The update specified the registration requirements and ongoing obligations for e-service providers, allowing e-wallet and e-payment operators to partner with corporations that provide capital market services. It also clarified that e-service providers who are currently subject to the directives of other regulators must first obtain their approvals before applying to the SC.
The chairman of the SC, Datuk Syed Zaid Albar, further commented that the commission will continue enabling the development of innovative digital solutions. This is aimed at making it easier for individuals to invest in Malaysia’s capital market.
“The introduction of the e-service platform framework will facilitate wider distribution of capital market products through digital platforms already familiar to our investors,” added Datuk Syed Zaid in the statement.
The news was met with enthusiasm by Touch ‘n Go eWallet, one of Malaysia’s largest e-wallet operators.
“We will be rolling out a suite of financial management products soon that will enable us to build financial resilience and literacy for the masses. Our 10 million strong users from various financial capabilities will now have the opportunity to navigate and manage their finances through a platform like Touch ‘n Go eWallet,” said the chief executive officer of TNG Digital, Ignatius Ong.
E-services platforms that are interested in applying to become an RMO may begin submitting their applications from today.
(Source: FintechNews Malaysia)