Skip to main content
Sign in
Create Account
Cart
Toggle navigation
Loading
Home
Hidden
Home
2
Guides
/
Global FinTech Guide
Name
Global FinTech Guide
Country _ Name
Malaysia
SectionTitle
Trading platforms / social trading platforms / signal following
Body
FinTechs belonging to this category operate trading platforms or online marketplaces for investment opportunities or certain financial contracts – e.g. securities, factoring etc. and sometimes furthermore provide contact to financial experts and tools for the decision-making.
FinTech-signalling and social trading platforms provide users with the opportunity to exchange opinions on financial investments and offer signal providers and traders the possibility to make their securities portfolio publicly visible. This way the portfolios can be linked to and followed by other traders via the platform automatically, so that the trading and investment strategy of the followed traders can be copied.
The platform often cooperates with a financial services provider or a credit institution where both the trader and the follower hold their securities accounts, and which execute the orders both of the trader and the follower and to which the platform passes on the trading decisions.
Introduction
Attitude of the country towards trading, social trading or signalling platforms
It is an established and well-regulated segment. There are generally no reservations towards trading, social trading or signalling platforms.
Legal affairs
Obligations and requirements to provide trading, social trading or signalling platforms described above
Dealing in securities is a regulated activity under the CMSA. FinTechs providing services as described above must obtain a CMSL licence from the SC and submit at least two (2) applicants for a CMSRL.
As set out in the
Licensing Handbook
published by the SC, the annual license fee for any first Regulated Activity is RM2,000 (approximately USD460) and for any subsequent additional Regulated Activity is RM1,000 (approximately USD230). The annual license fee for a CMSRL is RM200 (approximately USD46). Furthermore, such FinTechs must maintain a minimum paid-up capital and shareholders’ funds of RM20,000,000 (approximately USD4,560,000) at all times.
SC will only authorise (includes grant of license, registration, or approval) an applicant if the application is in the ‘best interest’ of Malaysia. In determining what constitutes ‘best interest’, SC will give regard to any one or more of the following:
a) the area of specialisation and level of expertise that can be offered to the capital market including the effect on productivity, transference of skills and efficiency and quality of capital market services;
b) the risk posed on the systemic stability of the capital market including activities and conduct that will likely impact the orderly functioning of the capital market;
c) contribution towards attracting investments, enhancing market linkages, and promoting vibrancy in the capital market;
d) ability in developing strategic or nascent sectors in the capital market; or
e) the degree and significance of participation of Malaysian in the capital market.
Additional comments regarding the legal situation for trading, social trading or signalling platforms or what FinTech’s must be aware of in this business area
BNM has issued the
Framework for Electronic Trading Platforms
policy document (“
Electronic Trading Policy
”) which sets out the requirements applicable to operators of electronic trading platforms (meaning any facility, trading venue or marketplace which brings market participants together via electronic means to negotiate, conclude or execute buying and selling of financial instruments in the money market or foreign exchange market) and
Loading
BackToCountry
Hidden
Hidden
Back to country
Malaysia
2
Switch country
Global overview
Authors
Loading
Name
Organisation
Email
Hidden
Hidden
Teo Wai Sum
Lee Hishammuddin Allen & Gledhill
[email protected]
0
2137
Eleena Abd Wahab
Lee Hishammuddin Allen & Gledhill
[email protected]
0
2137
Close
Choose country
Loading
Country
Hidden
Hidden
Albania
169
2
Argentina
514
2
Australia
184
2
Austria
679
2
Bosnia and Herzegovina
199
2
Canada
154
2
Chile
244
2
China
259
2
Colombia
274
2
Costa Rica
289
2
Croatia
304
2
Czech Republic
814
2
Dominican Republic
819
2
Egypt
319
2
France
724
2
Germany
215
2
Hong Kong
739
2
Hungary
349
2
Ireland
694
2
Italy
334
2
Korea, Republic of
364
2
Malaysia
664
2
Mexico
634
2
Montenegro
379
2
New Zealand
394
2
North Macedonia
439
2
Peru
424
2
Philippines
409
2
Poland
484
2
Portugal
499
2
Romania
799
2
Serbia
469
2
Slovenia
529
2
Spain
544
2
Switzerland
709
2
Thailand
559
2
Turkey
754
2
United Kingdom
784
2
United Rep of Tanzania
769
2
United States
589
2
Uruguay
574
2
{1}
##LOC[OK]##
{1}
##LOC[OK]##
##LOC[Cancel]##
{1}
##LOC[OK]##
##LOC[Cancel]##