THE Securities Commission Malaysia (SC) has determined that there is currently no need to proceed with legislation to establish a Bursa Malaysia Bhd subsidiary, Bursa Malaysia RegSub, intended to take over the exchange’s regulatory functions.
Bursa Malaysia confirmed in a filing on Friday that it received a letter from the SC dated March 19, 2026, signalling the closure of the proposed initiative.
First announced on February 25, 2020, the RegSub proposal sought to strengthen the group’s conflict-of-interest governance framework by clearly separating its regulatory responsibilities from commercial operations, reflecting Bursa Malaysia’s dual role as a market operator, frontline regulator, and self-listed entity.
The SC’s letter noted that Bursa Malaysia had since bolstered its governance framework, incorporating key recommendations initially linked to the RegSub proposal into its existing structure.
As a result, the regulator concluded that further legislation was unnecessary at this time, while affirming its intention to continue monitoring the effectiveness of the current governance arrangements.
“In light of the above enhancements undertaken by Bursa Malaysia thus far, the SC viewed that there was no necessity to proceed with the proposed legislation currently and would continue to monitor and assess the effectiveness of the current governance structure,” Bursa Malaysia said.
Among the changes cited were adjustments to the membership, functions, and governance of the Regulatory and Conflicts Committee (RACC), enhancing its independence from Bursa Malaysia management. Notably, the RACC now has a majority of external members, including its chairman.
“The SC took the position that the current, progressively strengthened RACC structure is adequate and practical towards the effective discharge of Bursa Malaysia's regulatory functions,” Bursa Malaysia added. - March 28, 2026
