SC Malaysia to Allow Financial Planners to Advise on Stocks, Bonds

The new policy will encourage informed participation in stocks and bonds, while also protecting investors against bad investment choices.

Malaysia’s SC (Securities Commission) is reportedly planning to expand the scope of specific advice by financial planners to include stocks and bonds.

According to SC chairman Datuk Syed Zaid Albar, financial planners can play a central role in encouraging informed participation in the stocks and bonds market, while also protecting investors against bad investment choices.

Speaking at a symposium organised by the Financial Planning Association of Malaysia, Syed Zaid said the new policy will require new financial planner competencies, and that further details will be released in due course.

“As the financial planning industry matures, various planners have started to think harder about their future direction and they have acknowledged the need to source for new growth opportunities,” he said.

“And so that’s why the SC has liberalised certain policies, along with other measures, to make room for the industry to grow and move up the advisory value chain.”

Syed Zaid also announced a pilot programme that will establish a retirement advisory platform to connect financial planners with members of private retirement schemes to provide retirement advice.