Bursa issues new regulatory framework for account opening
Published on: Saturday, December 20, 2014
KUALA LUMPUR: Bursa Malaysia has issued a new framework for the opening of trading and securities accounts for both retail investors and corporate clients. In a statement, it said the framework provides greater flexibility to Participating Organisations (POs) of Bursa Securities and Authorised Depository Agents of Bursa Depository (ADAs) in opening accounts. POs and ADAs are now able to allow individual investors to open the accounts through electronic mediums, it added. ADVERTISEMENT The amendments to the rules for this new framework has been approved by the Securities Commission and is effective Jan 15, 2015.Bursa Malaysia Chief Executive Officer Datuk Tajuddin Atan said the new framework's objective is to facilitate a simpler and smoother account opening process, with proper checks in place, and ensure the applicant's identity and information are authenticated before the accounts are opened. "The framework accommodates technological advancement and accords flexibility to POs/ ADAs to leverage on information technology. "It enables the adoption of internet based e-service applications to the extent that the POs/ADAs do not require the individual applicants to be present in person to open accounts," he added. ADVERTISEMENT As for the corporate clients, Tajuddin said, they too will benefit from a further reduction and standardisation in the documentation requirements for opening of accounts.Meanwhile, for individual investors, the process is simplified under the new framework.
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An individual investor may be afforded the option of completing and signing the account opening form and submitting the same to the PO/ADA, together with the relevant supporting documents, in hard or soft copy (for example, via electronic means), without the need to submit the form in person or sign it before an acceptable witness. The PO/ADA will then need to verify the identity of the individual and authenticity of the application using the methods prescribed by Bursa Securities, the statement said. –Bernama