SC INVITES PUBLIC FEEDBACK ON PROPOSED TECHNOLOGY RISK MANAGEMENT FRAMEWORK

KUALA LUMPUR, Aug 1 (Bernama) -- The Securities Commission Malaysia (SC) today published a consultation paper and is seeking public feedback on a proposed regulatory framework relating to the management of technology risks by capital market entities.

The Malaysian capital market’s technology landscape has progressed rapidly in recent years and embracing technology is critical for an inclusive and efficient capital market.

“While technology is a key enabler, its widespread use and rapid adoption can pose risks in many different areas if not properly managed,” an SC statement said today.

“The proposed regulatory framework for technology risk management is part of the regulator’s commitment to enhance governance and oversight of technology risks in capital market entities while further strengthening their technological resilience,” the SC said.

It is also in line with the SC’s development and regulatory aspirations as outlined in the Capital Market Masterplan 3.

Against this backdrop, the consultation paper sets out the key highlights 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 provider, as well as the principles relating to the adoption of artificial intelligence and machine learning, SC said.

The proposed framework aims to further improve capital market entities’ ability and effectiveness in detecting and addressing an increasing range of technology risks due to the prevalent use of technology, the emergence of new technologies and the growing sophistication of cyber threats.

The consultation paper in relation to the proposed framework is available from the SC. Interested parties and members of the public are welcome to submit their comments, feedback and queries to the SC by Sept 19, 2022, at cpresponse@seccom.com.my.

-- BERNAMA