Bursa Malaysia Securities Introduces Guidance On Rebate On Commission For Equities Brokers

Bursa Malaysia Securities Berhad (“Bursa Malaysia Securities”) has issued a Guidance on rebate on commission (“Guidance”) allowing equities brokers to offer non-cash rewards and incentives to their clients. The new Guidance will take effect from 9 September 2015.

This is part of the initiative undertaken by the Exchange to facilitate business and encourage market development, and at the same time introduce practices which are in line with other markets and jurisdictions. The introduction of the Guidance will not only encourage fair market conduct by equities brokers in rewarding and retaining clients, but will also promote active retail participation.

The Guidance is also intended to inculcate best practices in equities brokers in the structuring of the types of non-cash rewards and incentives that can be offered by equities brokers to their clients. This will further enhance Bursa Malaysia’s regulatory framework and promote best business conduct amongst the equities brokers.

For more information on the Guidance, please visit: http://www.bursamalaysia.com/market/regulation/rules/bursa-malaysia-rules/securities/rules-of-bursa-malaysia-securities