The Securities Commission Malaysia Annual Report 2020 highlighted that there were 34 cases relating to capital market offence, of which 50% of the cases were related to insider trading. It was also noted that in the same year, civil actions and regulatory settlements have been imposed on individuals involved in insider trading. The severity of the incidences was also notable through the fines and regulatory settlements which have fetched to a soaring amount from hundreds of thousands ringgit up to RM5 million.
In order to safeguard the interest of the capital market players, strong enforcement of the regulations and continuous improvement of the laws relating to insider trading is crucial. The Securities Commission Malaysia (SC) in April 2021 has issued Guidance Note on Controls by Fund Management Companies in Managing Material Non-Public Information (MNPI) with the objective to assist Fund Management Companies (FMCs) to establish and enhance sound internal controls in managing material non-public information (MNPI). In addition to that, with the rise of convictions related to insider trading, it is important and timely that the capital market participants are well versed in the activities as well as the rules and regulations pertinent to insider trading.
This programme will focus on the laws governing the securities offence in relation to insider trading and MNPI. Discussions will also delve into what is considered to be ‘material’ and ‘non-public’ as well as what employees should know in relation to managing them in accordance with the relevant laws and regulations.