Bursa Malaysia Annual Report 2015

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GOVERNANCE
62 Bursa Malaysia • Annual Report 2015
CORPORATE GOVERNANCE
STATEMENT
for the year to date, including the status of completion of key
initiatives by markets and functional units. The milestones
and progress of those initiatives which focused on “value
extraction” and “building for the future” were monitored in
line with the 2014-2016 Business Plan towards achieving
the aspirations of Bursa Malaysia by 2016. At the same
off-site meeting, the Board gave its feedback and input to
Management on the proposed initiatives, development of
improvement measures and implementation of the product
roadmap, some of which required further engagements
with the relevant authorities. The Board also conducted a
mid-year review of the 2015 Regulatory Plan based on the
regulatory key indicators and operational outcomes.
In October 2015, the Management presented the proposed
2016 Business Plan which comprised the detailed action
plans of the Securities, Derivatives and Islamic Capital
Markets for the Board’s review. The Board also considered
several business and enterprise initiatives, their approaches
with potential benefits and challenges in implementation. The
Director of Regulation also presented to the Regulatory and
Conflicts Committee (“RACC”) an overview of the proposed
2016 Regulatory Plan which provides the regulatory roadmap
and requirements to discharge Bursa Malaysia’s regulatory
function, in conjunction with its efforts to develop the capital
markets. The RACC is a Board Committee responsible for
overseeing the regulatory functions of Bursa Malaysia.
In its review of the proposed 2016 Regulatory Plan, the
RACC also considered the corresponding regulatory issues
and challenges expected during this period as well as the
proposed regulatory budget and manpower requirements.
The RACC then approved the proposed 2016 Regulatory Plan,
and recommended the same to the Board for approval.
The 2016 Key Operating Targets of the Business Plan and
the 2016 Regulatory Plan were subsequently approved by
the Board in October 2015. In November 2015, the Board
considered and approved the 2016 Group Budget which
was prepared by the Management premised upon the
earlier approved 2016 Business and Regulatory Plans.
b. Overseeing the conduct of the Company’s business
The CEO is responsible for the day-to-day management
of the business and operations of the Group with respect
to both its regulatory and commercial functions. He is
supported by the Management Committee4 and other
committees established under the Group’s Management
Governance Framework5 .
The Management’s performance under the leadership of
the CEO is assessed by the Board through a status report
which is tabled to the Board and includes a comprehensive
summary of the Group’s operating drivers and financial
performance during each reporting period. The Board is
also kept informed of key strategic initiatives, significant
operational issues and the Group’s performance based on
the approved KPIs in the Corporate Scorecard. The relevant
members of the Management were in attendance at Board
meetings to support the CEO in presenting the updates
on the progress of key initiatives, business targets and
achievements to date, and to provide clarification on the
challenges and issues raised by the Board. The Director of
Regulation was also in attendance at the Board meetings
to present updates and to respond to the enquiries by the
Board on the regulatory function of the Group.
To ensure effective oversight and monitoring of the
regulatory function, the Director of Regulation provides the
RACC with a status report on a regular basis, to report on
the progress of actions taken by the Regulation division and
to update on regulatory initiatives and activities. In the first
quarter of each year, the Management reports to the Board
on Bursa Malaysia’s compliance with its regulatory duties
and obligations under the Capital Markets and Services Act
2007 (“CMSA”) in the previous year. In March 2015, the
Board reviewed the Annual Regulatory Report 2014 before
it was submitted to the Securities Commission (“SC”) in
compliance with Section 16 of the CMSA.
In September 2015, the Board reviewed the results of the
2014 employee engagement surveywhichwas conducted by
an external firm to assess the level of employee satisfaction.
The objective of this annual exercise is to ensure continuous
improvement in Bursa Malaysia’s operating environment by
maintaining areas of strength and improving opportunities
for the internal stakeholders. The Group Human Resources
(“GHR”) also presented to the Board its commitment to
sustain the areas of strength and to continuously improve
through the initiatives undertaken group-wide and at
divisional levels which had brought about better employee
engagement compared to the previous year.
4 The Management Committee members are as set out in the Management Committee/Senior Management section of this Annual Report
5 The Management Governance Framework comprises two committees for governance function, and two committees for business operations function, as set out under Section 1.1 of this CG Statement. It is
available at