SC invites public feedback on proposed technology risk management framework

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SC invites public feedback on proposed technology risk management framework

KUALA LUMPUR (Aug 1): The Securities Commission Malaysia (SC) on Monday (Aug 1) 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

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

This 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 key highlights of the proposed regulatory framework, and seeks feedback on areas such as governance and compliance processes, management of technology risks, cybersecurity, data and third-party service providers, as well as principles relating to the adoption of artificial intelligence and machine learning, the 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, emergence of new technologies and growing sophistication of cyberthreats.

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 commission by Sept 19 at [email protected].

Source: theedgemarkets

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