Achieving Process Transparency

Licensing Process
 Acronyms and Abbreviations

ARAA Annual Reporting for Authorisation of Activity

CMSL Capital Market Services Licence
CMSRL Capital Market Services Representative’s Licence
ELA Electronic Licensing Application System
ISO International Standards Organisation 9001:2008
SC Securities Commission Malaysia

Securities Commission Malaysia 2

 Licensing Index
LICENSING
New Licences
New CMSL
New CMSRL
CMSL
• Dealing in Securities
• Dealing in Derivatives
• Clearing for securities or
derivatives
• Fund Management
• Dealing in Private Retirement
Schemes
• Advising in Corporate Finance
• Investment Advice
• Financial Planning
Securities Commission Malaysia
Reporting Submission
ARAA for CMSL
Fit and Proper Compliance Report by
Licensed Corporation
CMSRL
• Dealing in Securities
• Dealing in Derivatives
• Fund Management
• Advising in Corporate Finance
• Investment Advice
• Financial Planning
3
 Symbols:

Licensing Process Manual process

For New Companies and Proposed Representatives Automated process

Link

Process Flow Remarks

1
The Licensing Fig. 1
application kits are • Checklists for the submission of applications are available to
available from the ensure that all documents and relevant information required by
SC website SC in assessing the application is complete
www.sc.com.my
2 Fig. 2
Upon completion of the • The onus is on the applicant to furnish all required information
required information, the to ensure decision by SC in accordance with our Client Charter
new entrant may submit is not delayed
applications to
the SC Fig. 3
3 • The assessment will involve a review of the application for
completeness and fulfilment of licensing requirements as set
The Authorisation & out in the Licensing Handbook such as:
Licensing Department will • Fit and proper status of persons and companies
review and assess the • Security vetting
application • Capital requirements
4
• Strict procedures and protocols are in place to ensure that
Final decision on the quality services are provided to all New and Existing Licensees
application made by the
Licensing Committee Fig. 4
• The approving authority for these licence applications lies with
the Licensing Committee

Securities Commission Malaysia

A
4

Licensing Process
For New Companies and Proposed Representatives
Process Flow
5 Fig. 5
If the application is successful,
the licensee will be furnished
with an approval letter and
access to ELA
6
Once licensed, the company
must ensure continuous
compliance with licensing
requirements
7
Further support on ELA
may be obtained via
training
End
Securities Commission Malaysia
Symbols:
Manual process
Automated process
Link
Remarks
• Effective 1 January 2015, details of the licensees can be viewed
from the Public Register of Licence Holders at the SC’s website
• Further information and guidance on ELA should be directed to
the Licensing helpdesk at (03) 6204 8977 or through e-mail,
elahelp@seccom.com.my
• The ELA FAQs are available at www.sc.com.my
Fig. 6
The licensing requirements are presented in the Licensing
Handbook, securities laws, regulations, guidelines and any other
applicable law that may govern the activities carried on by the
CMSL and its CMSRL
Fig. 7
Training on the usage of ELA will be provided by the Authorisation
& Licensing Department to authorised employees (appointed
administrator and users of the system) of all new licensed
companies
5

Licensing Process
For New Representatives of Licensed Companies
Process Flow
1
Access ELA for electronic
submission
2 • The ELA FAQs are available at www.sc.com.my
Upon completion of the required
information by new entrants, licensed
companies may submit applications to
the SC via ELA
3 Fig. 3
The Authorisation &
Licensing Department will
review and assess the
application
4
Final decision on the
application made by the
Chairman
B
Securities Commission Malaysia
Symbols:
Manual process
Automated process
Link
Remarks
Fig. 1
• Further information and guidance on ELA should be directed to
the Licensing helpdesk at (03) 6204 8977 or through e-mail,
elahelp@seccom.com.my
Fig. 2
The appointed administrator and users of ELA from licensed
companies will assist in submitting new licence application for its
representatives via ELA
The assessment involves a review of the application for
completeness and fulfilment of licensing requirements set out in
Chapter 4 of the Licensing Handbook such as:
• Fit and proper status of representative
• Conduct of security vetting
Fig. 4
The approving authority for the application by new
representatives of licensed companies lies with the SC
Chairman
6

Licensing Process
For New Representatives of Licensed Companies
Process Flow
5
If the application is successful,
licensee’s detail will be
published on the Public
Register of Licence
Holder.
6
Once licensed, the representative
must ensure continuous
compliance with
licensing requirements
End
Securities Commission Malaysia
Symbols:
Manual process
Automated process
Link
Remarks
Fig. 5
• Effective 1 January 2015, details of the licensees can be viewed
from the Public Register of Licence Holders at the SC’s website
• Further information and guidance on ELA should be directed to
the Licensing helpdesk at (03) 6204 8977 or through e-mail,
elahelp@seccom.com.my
• The ELA FAQs are available at www.sc.com.my
Fig. 6
The licensing requirements are presented in the Licensing
Handbook, securities laws, regulations, guidelines and any other
applicable law that may govern the activities carried on by the
CMSL and its CMSRL
7
 The Authorisation & Licensing Department
Client Charter

Type of application Time

• New Company Licence 6 weeks
• New Representative Licence 2 weeks
Note:
SC’s Client Charter applies if the submission is complete and the ‘fit and proper’ criteria for representatives and
companies are met.

Securities Commission Malaysia 8