KUALA LUMPUR – Public feedback on the proposed regulatory framework related to managing technology risks by capital market entities are welcomed by the Securities Commission Malaysia (SC).
The SC has called for the feedback on their consultation paper starting from now until Sept 19 of this year.
The regulator stated in a recent statement that in recent years, there has been significant development in the technology landscape of the Malaysian capital market, and an acceptance of technology is essential for the development of an inclusive and efficient capital market.
Additionally, the statement explained that while technology is a crucial enabler, its widespread usage and rapid adoption could pose risks in different areas if it is not adequately managed.
This is why the proposed regulatory framework for technology risk management is part of the SC’s commitment in enhancing governance and review the oversight of technological risks in capital market entities while at the same time further bolstering technological resilience, it added.
Furthermore, the framework is also in line with the SC’s goals regarding development and regulation, which are defined in the Capital Market Masterplan 3.
According to the SC, in light of this context, the consultation paper outlines key highlights of the proposed regulatory framework and is looking for public feedback on topics that includes governance and compliance processes; management of technology risks; cybersecurity; guidelines on the implementation of artificial intelligence and machine learning; as well as data and third-party service providers.
Apart from that, the proposed framework also aims to further enhance the ability and effectiveness of capital market entities when it comes to detecting and addressing a growing range of technological risks as a result of prevalent use of technology, the emergence of new tech, and the increasing sophistication of cyberthreats.
The consultation paper is available on the SC website here.
Any interested parties and members of the public are welcome to send in their comments, suggestions, and questions on this proposed regulatory framework, to the SC at their email: [email protected].
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