The Securities Commission is finalising a new framework to regulate cash trust schemes, aiming to protect investors from unlicensed operators.
KUALA LUMPUR: The Securities Commission Malaysia (SC) is finalising a new regulatory framework for cash trust schemes that invest in capital market products.
The Ministry of Finance (MoF) said this will clarify the scope and licensing requirements for such activities.
“The cash trust-related framework will be introduced in the near future,” the ministry stated in a written parliamentary reply published on Tuesday (February 24).
The move follows concerns raised by Kepong MP Lim Lip Eng regarding schemes that failed to make payments, causing significant investor losses.
The MoF confirmed the SC is investigating several trust companies suspected of conducting regulated activities without a licence.
It added that case details cannot be disclosed as investigations are ongoing.
From January 1, 2026, amendments to the Capital Markets and Services Act 2007 empower the SC to determine which trust companies and activities are exempt from licensing.
