Suruhanjaya Sekuriti Securities Commission GUIDELINES FOR THE EMPLOYMENT OF NON-MALAYSIAN CITIZENS IN THE SECURITIES AND FUTURES INDUSTRIES Date Issued: 26 October 2006
C O N T E N T S PAGE CHAPTER 1 1-1 INTRODUCTION CHAPTER 2 2-1 INTERPRETATION CHAPTER 3 3-1 APPLICATION TO THE SECURITIES COMMISSION CHAPTER 4 4-1 COMPLIANCE AND ENFORCEMENT OF GUIDELINES APPENDIX 1 A-1 LIST OF UNDER-STUDIES FOR APPROVED DESIGNATION TO BE FILLED BY NON-MALAYSIAN CITIZENS
Chapter 1 INTRODUCTION 1.01 The Securities Commission Act 1993 provides that the Securities Commission (SC) is responsible, inter alia, for (c) (d) (e) advising the Minister of Finance on all matters relating to the securities and futures industries; supervising and monitoring the activities of any exchange holding company, exchange, clearing house and central depository; taking all reasonable measures to maintain the confidence of investors in the securities and futures markets by ensuring adequate protection for such investors; promoting and encouraging proper conduct among participating organisations, participants, affiliates, depository participants and all licensed or registered persons of an exchange, clearing house and central depository; and encouraging and promoting the development of the securities and futures markets in Malaysia, including research and training in connection thereto. 1.02 These guidelines were designed and formulated with the aim of providing a framework to protect the interests of investors at large and facilitate the orderly development of the securities and futures industries by ensuring that non-malaysian citizens employed in the securities and futures industries are fit and proper persons; and the employment of non-malaysian citizens in the securities and futures industries takes account of national development and economic policies of the government. 1.03 The requirements of these guidelines must be complied with by all corporations regulated by the SC in the securities and futures industries, with immediate effect. Non-compliance with the provisions of these guidelines may attract penalties stipulated under Chapter 4 of these guidelines. 1-1
1.04 The SC may, where it deems appropriate, allow any exemption and variation from these guidelines based on the merits of the case. Where the SC allows any exemption or variation from these guidelines, the relevant corporations will not be absolved from any duty or liability under any law. 1-2
Chapter 2 INTERPRETATION In these guidelines, unless the context otherwise requires central depository clearing house corporation corporation in the securities and futures industries futures market licensed person management company parties to a unit trust scheme securities exchange expression in the Securities Industry (Central Depositories) Act 1991. expression in the Securities Commission Act 1993. expression in the Companies Act 1965. means a corporation regulated by the SC and includes a licensed person, central depository, clearing house, futures market, parties to a unit trust scheme, securities exchange, venture capital corporation and venture capital management corporation. expression in the Futures Industry Act 1993. expression in the Securities Commission Act 1993. expression in the Securities Commission Act 1993. means the management company of the unit trust scheme and the trustee of the unit trust scheme. means a person that establishes, operates or maintains a stock market whether in Malaysia or elsewhere and includes a stock exchange. 2-1
stock exchange venture capital corporation and venture capital management corporation expression in the Securities Industry Act 1983. have the same meaning as assigned to that expressions in the Securities Industry (Exempt Dealer)(No.2) Order 2002 made pursuant to the Securities Industry Act 1983. 2-2
Chapter 3 APPLICATION TO THE SECURITIES COMMISSION 3.01 For the approval of any non-malaysian citizens to be employed in the securities and futures industries, the application shall be made to the SC by completing Form 1 entitled Application for the Employment of Non- Malaysian To Be Filled by the Principal Company ; and Form 2 entitled Application for the Employment of Non- Malaysian To Be Filled by the Non-Malaysian Citizen Candidate separate application form for each candidate. 3.02 Form 1 shall be submitted to the SC accompanied by the following documents: (c) Organisation structure of the applicant; Details of under-studies 1 as set out in Appendix 1; and Any other information or documents to support the application to be included as additional appendices. 3.03 Form 2 shall be submitted to the SC accompanied by the following documents: (c) (d) A copy of applicant s recent passport-sized colour photograph; A certified true copy of the applicant s passport/passports; A certified true copy of the applicant s academic or professional certificate; Referral letters from two individuals; 1 Corporation with foreign paid-up capital of less than RM2 million is required to submit this information. 3-1
For the purposes of this application, a referee shall be a person (i) (ii) (iii) (iv) with whom the applicant has had regular contact for the past five years; who has no interest in the success or otherwise of this application; who is not a relative of the applicant; who is a government officer; is a member of a professional body; is a member of the academic staff of a university or other tertiary educational institution; or occupies a managerial position in any body corporate; and (v) of whom the SC may enquire regarding the character and reputation of the applicant; (e) (f) A certified true copy of marriage certificate (if the applicant is married to a Malaysian citizen); and Any other information or documents to support the application shall be included as additional appendices. A copy of documents referred to in, (c) and (e) shall be certified as a true copy by (aa) (bb) a Commissioner for Oaths; or an advocate or solicitor. If the documents referred to in, (c), (d), (e) and (f) are in a language that is neither the national language of Malaysia or English Language, there shall be attached to this application, in addition to the duly certified copies of the documents, a translation in either the Malaysian national language or the English language that has been certified as a 3-2
correct translation of the documents by the relevant Embassy or High Commission of the country of which the said foreign language is an official language. 3.04 The SC may, in considering any application, request for any further or other information or documents not specified in these guidelines. 3.05 The SC shall be immediately informed of any material change in the circumstances that will affect the consideration of the SC; and any material change/development in circumstances relating to an application occurring subsequent to the SC giving its approval. The SC may review its decision in the event that circumstances are known to the SC only after it had considered the application; given such circumstances, if known prior to the application being considered, would affect the SC s decision making. For this purpose, an application with full justifications and effects shall be submitted for the SC s review. 3.06 All enquiries and applications to the SC shall be addressed to: The Licensing Department Securities Commission 3, Persiaran Bukit Kiara Bukit Kiara 50490 Kuala Lumpur Telephone: 03 6204 8000 Facsimile: 03 6201 5282 3.07 The SC may, in approving any application, impose conditions to such approval. 3.08 Once the application is approved by the SC, the applicant must attach the letter of approval to the application form for the issuance of work permit (Form DP 11- Immigration Department, Malaysia) together with the relevant documentation for the submission to the Director General of Immigration. 3-3
3.09 The SC s approval of any application does not in any way absolve the corporation receiving such approval of its duty to comply with relevant immigration or other procedures as determined under any law in Malaysia. 3.10 Any person who is aggrieved by the decision of the SC may, within 14 days after the aggrieved person is notified of such decision, make an appeal to the Minister of Finance whose decision shall be final. 3-4
Chapter 4 COMPLIANCE AND ENFORCEMENT OF GUIDELINES 4.01 Corporations in the securities and futures industries, and any prospective non-malaysian employee of such corporations must comply with all guidelines applicable to them. 4.02 The SC expects full compliance with these guidelines. In the instances of non-compliance with these guidelines, the SC may take action on the party/parties responsible 1 as outlined in paragraph 4.03. In this connection, the SC will seek explanation before deciding on the action to be taken. 4.03 The types of penalties that the SC may impose will be dependent on the severity of the transgression(s). The SC may take any one or more of the following measures: (c) (d) Inform the Director General of Immigration; Issue of caution letter; Issue of reprimand letter; Either (i) issue a public reprimand/ censure; or (ii) (iii) issue a public statement to the effect that, in the SCopinion, the retention of office by the relevant non- Malaysian citizens employed by the corporation is prejudicial to the interests of the investing public; recommend that the relevant non-malaysian citizens employed by the corporation be removed from office and that he/she be barred from becoming employed in the securities and futures industries for a period of time 1 This includes the corporations desirous of employing non-malaysian citizens under these guidelines and its directors. 4-1
as may be determined by the SC in consultation with the relevant authorities; (e) (f) Prosecution under the relevant sections under the Statutory Declarations Act 1960 for false declaration punishable under the Penal Code; and Any other action or actions as the SC may deem appropriate. 4-2
APPENDIX 1 LIST OF UNDER-STUDIES FOR APPROVED DESIGNATION TO BE FILLED BY NON-MALAYSIAN CITIZENS Details of Designation Details of Under-studies No. Name of Designation Required Approved Name of Qualification Current Date of Year to Non-Malaysian Qualification Period Under-studies /Experience Designation Appointment Replace Date: ALL INFORMATION PROVIDED IS TRUE AND CORRECT Signature :... Name :... Designation :... Company/Corporation :... A-1