Following the publication of consultation document No. 3/2021 in August 2021, Bursa Malaysia Berhad (‘the exchange‘) announced on December 20, 2021 changes to the listing requirements on the main market (‘MMLR‘) with regard to the improved advisory framework, the submission of business proposals and other changes to take effect from January 1, 2022.
The changes to the MMLR mainly relate to the following:
Some of the main amendments are as follows:
Align the Senior Advisor framework under the MMLR with the RPA framework
The Senior Advisor framework under the MMLR is replaced by the RPA framework. To this end, the term “Principal Advisor” in the MMLR is replaced with “Recognized Principal Advisor” which refers to a Principal Advisor recognized under the Licensing Handbook, thereby aligning the requirements of the MMLR with the RPA framework.
Section 7A.04 (2) of the Licensing Handbook provides that an RPA must be a senior advisor listed in the first column of Table 121 of paragraph 7A.03 of the Licensing Handbook (other than an approved bank or special regime broker) that has:
According to the Exchange, the alignment of the senior advisor framework under the MMLR with the RPA framework will strengthen the accountability of advisers and their key agents involved in submitting important proposals to the Exchange, improve the scope with regard to counselors, as well as promoting a more effective counselor regime under the MMLR.
Strengthen the role of an RPA
The changes require an RPA and its key executives (i.e. its QP and superior2 (‘SO‘)) to protect the interests of security holders and investors by exercising increased oversight and supervision over the following proposals (‘Specific proposal‘):
In order to ensure that scholarship-specific proposal submissions are of high quality and in line with the SC’s approach to submitting specific proposals under the Submission Guidelines, the MMLR is amended to:
The MMLR is also amended to impose joint and several liability on all RPAs when more than one of them is involved in a specific proposal. Likewise, all SO or QP will be jointly and severally liable for a specific proposal when several of them are assigned to a specific proposal.
Removal of the normative approach to due diligence concerning the issuance of new securities
The existing prescriptive approach in the MMLR for due diligence to be performed in accordance with the SC Guidelines on Due Diligence Conduct for Corporate Proposals for Proposals for Additional Listing Requests for a New Issue of Securities will be deleted. Instead, the MMLR will require that due diligence be conducted in accordance with industry best practices. However, affected parties will still be required to conduct thorough investigations and comply with equivalent obligations and standards imposed under the Submission Guidelines.
Strengthening the accountability of QPs and SOs
To strengthen the scope of the regulations and the MMLR enforcement regime:
Other notable changes are as follows:
Details of the changes can be viewed here.