SC TO SUBMIT FEE REVIEW PROPOSAL TO MOF BY END OF MARCH

KUALA LUMPUR, March 20 (Bernama) -- The Securities Commission Malaysia (SC) is expected to submit its proposal to review levies of fees from intermediaries by the end of March to the Finance Ministry (MoF), said SC executive chairman Datuk Mohammad Faiz Azmi. 

These intermediaries are entities licensed to conduct regulated activities like dealing in securities, fund management, and investment advice. 

He said that since the SC was founded in 1993, the fees have never been reviewed despite the fact that SC's roles and responsibilities have expanded. 

He said the SC are proposing for proportionate, fair and equitable fees, structured based on size, complexity and level of activities.

"The fees will vary from class to class. For example, if you are a unit trust consultant, you only pay RM50. So it will be more than RM50.

"But we don't want to try and do it just by telling you we are doing it. We want to have conversations and engagements and see if I did it, what would be the impact on your profit?

"We don't want it to be so painful that you have to pass the cost to consumers. That is not the idea. I want you to pay it, not your customers," he said at a press conference in conjunction with SC's Annual Report 2024 here today. 

Mohammad Faiz stressed that the intention of reviewing the fees are to cover its operation costs, and not to make profit because as a regulator, SC is not a profit-making entity.

Elaborating on when the changes could take effect, he said some cases could be realised sooner through bilateral agreement, while some may need changes to regulations and laws.

"What's important is that we are putting this in motion. Maybe we'll see some changes happening next year," said Mohammad Faiz. 

Meanwhile, he said the SC will continue to promote the Family Office incentive scheme in Forest City, Johor among locals and foreign investors.

He said the commission is planning to do a series of visits to the Middle East, beginning with Oman this year and Saudi Arabia the following year.

“It's not unusual to go out there and talk to a few companies. I want to have a conversation with their shareholders to make sure that we understand where they're coming from, what the restrictions are. We want to talk to the regulators to understand how open they are to their funds investing in our part of the world.

“We want to talk to some of the bigger players. But to do that, we've got to be there," he said.

Compared to Singapore, Johor stands to be more beneficial in terms of cheaper land, cheaper labour as well as a suitable place such as Forest City, which is near to Singapore, said Mohammad Faiz.

“I would like to get these people (investors) here because the lessons from the UK is if the decision-makers are in our country, it's very easy to influence them to invest more because they like the place. And the amount we're asking them to invest is small,” he said.

-- BERNAMA