Regulatory Alerts2006-11-03
Practice Note on Registration by the Securities Commission for the Purpose of Acting as a Bond Trustee
The Securities Commission of Malaysia requires all entities acting as trustees for approved debentures or Islamic securities to register under this Practice Note. Applicants must meet stringent criteria encompassing minimum shareholder funds, escalating professional indemnity insurance coverage, adequate trustee expertise, strict conflict-of-interest safeguards, and fit-and-proper status for all key personnel. The document details the mandatory application submission process, grants the Commission authority to conduct periodic inspections and investigations, and specifies exact grounds and remediation timelines for suspending or revoking a trustee’s registration.
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