Financial Regulations and Policies every Fintech Geek should be aware of

LIM JO YAN5 September 2016Partner, Head of Corporate and Commercial Practice Group

Who are the relevant Regulators?

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• Central Bank of Malaysia• Securities Commission• Competition Commission• Personal Data Protection Commission• Ministry of Urban Wellbeing, Housing

and Local Government• Communications and Multimedia

Commission

Market Segments

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• Data and Analytics

- Customer facing purposes- customer segmentisation, product

targeting, pricing optimisation

- Risk management- credit risk, fraud

Market Segments

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• Data and Analytics

- Legal Issues- Personal Data Privacy- Intellectual Property- Competition/anti-trust

Market Segments

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• Artificial Intelligence

- Automated advice

- Automated decision making

- Automated product recommendation

Market Segments

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• Artificial Intelligence

- Legal Issues- Licensing- Personal Data Protection- Negligence

Market Segments

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• Payments

- P2P fund transfer

- P2P currency transfer

Market Segments

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• Payments

- Legal Issues- Licensing- Foreign Exchange Control- Anti-Money Laundering- Anti-bribery- Know your client- E-commerce transactions / digital

signatures

Market Segments

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• Digital Currencies

- Virtual currencies

Market Segments

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• Digital Currencies

- Legal Issues- Legality- Regulation of the technology- AML- KYC

Market Segments

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• Crowdfunding

- Equity Crowdfunding

- P2P Lending

Market Segments

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• Crowdfunding

- Legal Issues- Licensing- Companies Act- Moneylending- Trustee- Nominee arrangements- AML & KYC

Development

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• BNM Regulatory Sandbox

• Point for consideration:- BNM and SC are the drivers of fintech

in Malaysia- Know who is the relevant regulator

Conclusion

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• More often than not, fintech businesses are regulated

• Engage in discussions with the regulators

• Seek professional advice

Thank you!

Lim Jo Yan

T 6 03 7887 2702

E joyan.lim@mahwengkwai.com

www.mahwengkwai.com