Securities Commission Malaysia publishes principles on continuity in capital markets

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Securities Commission Malaysia publishes principles on continuity in capital markets

16th May 2019 banking financial market financial system regulations Security 0

The Securities Commission Malaysia (SC) has published its Guiding Principles on Business Continuity for capital market entities.

These principles set out SC’s expectations of the business continuity management within capital markets, in order to ensure quick continuity of critical services and fulfilment of business obligations when there are disruptions.

This comprehensive approach will help to mitigate possibilities of wider systemic risk implications to capital markets, it said.

Six focus areas are highlighted by the principles including the board and senior management’s responsibilities in ensuring sound and effective continuity protocol. Other areas explored in the principles are the importance of risk identification, in particular, interdependency and concentration risks, a risk-based recovery strategy and annual testing of business continuity protocols.

Additionally, the principles set out complete escalation procedures and communication plans in the circumstance of a major disruption. The SC is also ensuring the ongoing monitoring of business continuity arrangements.

The regulator developed these new principles in close consultation with the industry.

In a blog post, the regulator said, “Capital market entities are encouraged to adopt and implement these principles, which serve as best practices, taking into account the nature, size and complexity of their business operations.”

A full outline of the new principles can be found on the regulator’s website.

These principles have been released as part of its efforts in boosting the systemic resiliency of the capital market.

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