Country _ Name
Trading platforms / social trading platforms / signal following
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.


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



Choose country