Supreme Court invites public feedback on proposed technology risk management framework
KUALA LUMPUR (August 1): The Securities Commission Malaysia (SC) published a consultation paper on Monday (August 1), and is seeking public feedback on a proposed regulatory framework relating to the management of technology risks by capital market entities.
The technology landscape of Malaysian capital markets has evolved rapidly in recent years, and technology adoption is critical for an inclusive and efficient capital market.
“While technology is a key enabler, its widespread use and rapid adoption could pose risks in many different areas,” a Supreme Court statement said.
“The proposed regulatory framework for technology risk management is part of the regulator’s commitment to enhance governance and monitor technology risks in capital market entities, while further strengthening technical resilience,” the SC said.
It is also in line with the growth and regulatory aspirations of SC as outlined in Capital Markets Masterplan 3.
Against this background, the consultation paper sets out the salient features of the proposed regulatory framework, and seeks feedback on areas such as governance and compliance processes, management of technology risks, cyber security, data and third party service providers as well as related principles . SC said that the adoption of artificial intelligence and machine learning.
The proposed framework aims to further improve the capacity and effectiveness of capital market entities in detecting and addressing the increasing range of technology risks due to the prevailing use of technology, the emergence of new technologies and the increasing sophistication of cyber threats.
The consultation paper regarding the proposed framework is available from SC. Interested parties and members of the public are welcome to submit their comments, feedback and questions to the Commission by 19 September [email protected],