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GUIDELINES FOR THE EMPLOYMENTOF NON-MALAYSIAN CITIZENS IN THESECURITIES AND FUTURES INDUSTRIES
Date Issued: 26 October 2006
Suruhanjaya SekuritiSecurities Commission
C O N T E N T S
PAGE
CHAPTER 1 1-1INTRODUCTION
CHAPTER 2 2-1INTERPRETATION
CHAPTER 3 3-1APPLICATION TO THE SECURITIES COMMISSION
CHAPTER 4 4-1COMPLIANCE AND ENFORCEMENT OF GUIDELINES
APPENDIX 1 A-1LIST OF “UNDER-STUDIES” FOR APPROVED DESIGNATIONTO BE FILLED BY NON-MALAYSIAN CITIZENS
Guidelines for the Employment of Non-MalaysianCitizens in the Securities and Futures Industries
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Chapter 1
INTRODUCTION
1.01 The Securities Commission Act 1993 provides that the SecuritiesCommission (SC) is responsible, inter alia, for–
(a) advising the Minister of Finance on all matters relating to thesecurities and futures industries;
(b) supervising and monitoring the activities of any exchangeholding company, exchange, clearing house and centraldepository;
(c) taking all reasonable measures to maintain the confidence ofinvestors in the securities and futures markets by ensuringadequate protection for such investors;
(d) promoting and encouraging proper conduct amongparticipating organisations, participants, affiliates, depositoryparticipants and all licensed or registered persons of anexchange, clearing house and central depository; and
(e) encouraging and promoting the development of the securitiesand futures markets in Malaysia, including research and trainingin connection thereto.
1.02 These guidelines were designed and formulated with the aim ofproviding a framework to protect the interests of investors at largeand facilitate the orderly development of the securities and futuresindustries by ensuring that–
(a) non-Malaysian citizens employed in the securities and futuresindustries are fit and proper persons; and
(b) the employment of non-Malaysian citizens in the securities andfutures industries takes account of national development andeconomic policies of the government.
1.03 The requirements of these guidelines must be complied with by allcorporations regulated by the SC in the securities and futures industries,with immediate effect. Non-compliance with the provisions of theseguidelines may attract penalties stipulated under Chapter 4 of theseguidelines.
Guidelines for the Employment of Non-MalaysianCitizens in the Securities and Futures Industries
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1.04 The SC may, where it deems appropriate, allow any exemption andvariation from these guidelines based on the merits of the case. Wherethe SC allows any exemption or variation from these guidelines, therelevant corporations will not be absolved from any duty or liabilityunder any law.
Guidelines for the Employment of Non-MalaysianCitizens in the Securities and Futures Industries
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Chapter 2
INTERPRETATION
In these guidelines, unless the context otherwise requires–
central depository has the same meaning as is assigned to thatexpression in the Securities Industry (CentralDepositories) Act 1991.
clearing house has the same meaning as is assigned to thatexpression in the Securities Commission Act1993.
corporation has the same meaning as is assigned to thatexpression in the Companies Act 1965.
corporation in the securities means a corporation regulated by the SC andand futures industries includes a licensed person, central depository,
clearing house, futures market, parties to aunit trust scheme, securities exchange,venture capital corporation and venture capitalmanagement corporation.
futures market has the same meaning as is assigned to thatexpression in the Futures Industry Act 1993.
licensed person has the same meaning as is assigned to thatexpression in the Securities Commission Act1993.
management company has the same meaning as is assigned to thatexpression in the Securities Commission Act1993.
parties to a unit trust scheme means the management company of the unittrust scheme and the trustee of the unit trustscheme.
securities exchange means a person that establishes, operates ormaintains a stock market whether in Malaysiaor elsewhere and includes a stock exchange.
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stock exchange has the same meaning as is assigned to thatexpression in the Securities Industry Act 1983.
venture capital corporation have the same meaning as assigned to thatand venture capital expressions in the Securities Industry (Exemptmanagement corporation Dealer)(No.2) Order 2002 made pursuant to
the Securities Industry Act 1983.
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Chapter 3
APPLICATION TO THE SECURITIES COMMISSION
3.01 For the approval of any non-Malaysian citizens to be employed in thesecurities and futures industries, the application shall be made to theSC by completing–
(a) Form 1 entitled “Application for the Employment of Non-Malaysian Citizens in the Securities and Futures Industries – ToBe Filled by the Principal Company”; and
(b) Form 2 entitled “Application for the Employment of Non-Malaysian Citizens in the Securities and Futures Industries – ToBe Filled by the Non-Malaysian Citizen Candidate” – separateapplication form for each candidate.
3.02 Form 1 shall be submitted to the SC accompanied by the followingdocuments:
(a) Organisation structure of the applicant;
(b) Details of under-studies1 as set out in Appendix 1; and
(c) Any other information or documents to support the applicationto be included as additional appendices.
3.03 Form 2 shall be submitted to the SC accompanied by the followingdocuments:
(a) A copy of applicant’s recent passport-sized colour photograph;
(b) A certified true copy of the applicant’s passport/passports;
(c) A certified true copy of the applicant’s academic or professionalcertificate;
(d) Referral letters from two individuals;
1 Corporation with foreign paid-up capital of less than RM2 million is required to submit thisinformation.
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For the purposes of this application, a referee shall be a person–
(i) with whom the applicant has had regular contact forthe past five years;
(ii) who has no interest in the success or otherwise of thisapplication;
(iii) who is not a relative of the applicant;
(iv) who–
• is a government officer;
• is a member of a professional body;
• is a member of the academic staff of a universityor other tertiary educational institution; or
• occupies a managerial position in any bodycorporate; and
(v) of whom the SC may enquire regarding the characterand reputation of the applicant;
(e) A certified true copy of marriage certificate (if the applicant ismarried to a Malaysian citizen); and
(f) Any other information or documents to support the applicationshall be included as additional appendices.
A copy of documents referred to in (b), (c) and (e) shall be certified asa true copy by–
(aa) a Commissioner for Oaths; or
(bb) an advocate or solicitor.
If the documents referred to in (b), (c), (d), (e) and (f) are in a languagethat is neither the national language of Malaysia or English Language,there shall be attached to this application, in addition to the dulycertified copies of the documents, a translation in either the Malaysiannational language or the English language that has been certified as a
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correct translation of the documents by the relevant Embassy or HighCommission of the country of which the said foreign language is anofficial language.
3.04 The SC may, in considering any application, request for any further orother information or documents not specified in these guidelines.
3.05 The SC shall be immediately informed of–
(a) any material change in the circumstances that will affect theconsideration of the SC; and
(b) any material change/development in circumstances relating toan application occurring subsequent to the SC giving itsapproval.
The SC may review its decision in the event that circumstances areknown to the SC only after it had considered the application; givensuch circumstances, if known prior to the application being considered,would affect the SC’s decision making. For this purpose, an applicationwith 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 DepartmentSecurities Commission3, Persiaran Bukit KiaraBukit Kiara50490 Kuala LumpurTelephone: 03–6204 8000Facsimile: 03–6201 5282
3.07 The SC may, in approving any application, impose conditions to suchapproval.
3.08 Once the application is approved by the SC, the applicant must attachthe letter of approval to the application form for the issuance of workpermit (Form DP 11- Immigration Department, Malaysia) together withthe relevant documentation for the submission to the Director Generalof Immigration.
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3.09 The SC’s approval of any application does not in any way absolve thecorporation receiving such approval of its duty to comply with relevantimmigration or other procedures as determined under any law inMalaysia.
3.10 Any person who is aggrieved by the decision of the SC may, within 14days after the aggrieved person is notified of such decision, make anappeal to the Minister of Finance whose decision shall be final.
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Chapter 4
COMPLIANCE AND ENFORCEMENT OF GUIDELINES
4.01 Corporations in the securities and futures industries, and anyprospective non-Malaysian employee of such corporations must complywith all guidelines applicable to them.
4.02 The SC expects full compliance with these guidelines. In the instancesof non-compliance with these guidelines, the SC may take action onthe party/parties responsible1 as outlined in paragraph 4.03. In thisconnection, the SC will seek explanation before deciding on the actionto be taken.
4.03 The types of penalties that the SC may impose will be dependent onthe severity of the transgression(s). The SC may take any one or moreof the following measures:
(a) Inform the Director General of Immigration;
(b) Issue of caution letter;
(c) Issue of reprimand letter;
(d) Either–
(i) issue a public reprimand/ censure;
or
(ii) issue a public statement to the effect that, in theSCopinion, the retention of office by the relevant non-Malaysian citizens employed by the corporation isprejudicial to the interests of the investing public;
(iii) recommend that the relevant non-Malaysian citizensemployed by the corporation be removed from officeand that he/she be barred from becoming employed inthe securities and futures industries for a period of time
1 This includes the corporations desirous of employing non-Malaysian citizens under these guidelinesand its directors.
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as may be determined by the SC in consultation withthe relevant authorities;
(e) Prosecution under the relevant sections under the StatutoryDeclarations Act 1960 for false declaration punishable underthe Penal Code; and
(f) Any other action or actions as the SC may deem appropriate.
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LIST
OF
“UN
DER
-STU
DIE
S” F
OR
APP
RO
VED
DES
IGN
ATI
ON
TO
BE
FILL
ED B
Y N
ON
-MA
LAY
SIA
N C
ITIZ
ENS
Det
ails
of
Des
igna
tion
Det
ails
of
“Und
er-s
tudi
es”
No.
Nam
e of
Des
igna
tion
Requ
ired
App
rove
dN
ame
ofQ
ualif
icat
ion
Cur
rent
Dat
e of
Year
to
Non
-Mal
aysi
anQ
ualif
icat
ion
Perio
d“U
nder
-stu
dies
/Exp
erie
nce
Des
igna
tion
App
oint
men
tRe
plac
e
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APPENDIX 1
Dat
e:…
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A
LL IN
FOR
MA
TIO
N P
RO
VID
ED IS
TR
UE
AN
D C
OR
REC
T
Sign
atur
e:.
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ame
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Des
igna
tion
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Com
pany
/Cor
pora
tion
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