Bursa Malaysia • Annual Report 2013
48
In addition, we also rolled out several initiatives in 2013 to strengthen brokers’
governance and conduct as stated below.
a. The Self Examination Approach (SEA) - to promote the practice of self-
reporting among brokers. The SEA aims to help participants to identify and
monitor high risk areas to contain the risk of major breaches. It enables
weaknesses and risks to be addressed and corrected at early stages and
advocates a high standard of business conduct.
b. The Green Lane Policy (GLP) - to enhance business efficiency for equity
brokers as well as encourage greater self-regulation. Only POs that have
met the criteria of familiarity and supervisory controls as well as displayed
high standards of business conduct are eligible to adopt the GLP and avail
themselves of the incentives under it. As of 31 December 2013, some
68% of brokers had qualified for the GLP.
We continued to carry out educational programmes for the brokers and their
registered persons in 2013. The programmes are aimed at supplementing
and enhancing participants’ knowledge and understanding of our regulatory
requirements. These programmes include collaboration with industry
associations and professional bodies.
Regulatory Statement
To our Stakeholders
Enforcement Activities
As part of our measures to secure compliance by our regulated persons of our
rules, we take appropriate actions for non-compliance including enforcement/
disciplinary action for serious non-compliances or breaches.
In 2013, we took 81 enforcement actions against listed companies, directors
and advisers for various breaches of the Listing Requirements, whereas in
respect of brokers and other registered persons, a total of 89 actions were
imposed for various breaches of the Business Rules.
We note that there has been a significant decline of more than 50% in breaches
relating to financial reporting obligations (in terms of timeliness and accuracy)
from 2008 until now. We believe this lower number of breaches and increased
level of compliance could be due to the strict enforcement by Bursa Securities
in respect of these financial reporting breaches from 2008 onwards. The
greater emphasis on director enforcement for such breaches coupled with
communication and education by Bursa Securities, too have been instrumental.
In 2013, amendments were also made to the Listing Requirements and the
Business (Securities) Rules. Under these amendments, a person who has
committed certain specified breaches would be given the option by Bursa to
resolve the breach by way of an expedited enforcement proceeding instead of
a full enforcement proceeding. Furthermore, in a full enforcement proceeding,
a person who has breached the rules may also propose to settle/resolve the
matter by agreeing with Bursa Malaysia on certain facts, liability or penalty in
relation to the breach. These enhancements enable enforcement actions to be
resolved and completed expeditiously.
