SC Finalising Scope, Licensing Requirements For Cash Trust Schemes

KUALA LUMPUR, Feb 24 (Bernama) -- The Securities Commission Malaysia (SC) is finalising the framework to clarify the scope and licensing requirements for cash trust schemes investing in capital market products, said the Finance Ministry of Finance Malaysia (MoF).

The MoF said this will ensure that the implementation of the framework is clearer and more effective for the regulation of such cash trust scheme activities.

“The cash trust-related framework will be introduced in the near future,” the ministry said in a written reply published on the Parliament website today.

It was responding to a question from Lim Lip Eng (PH-Kepong) who sought clarification regarding issues involving cash trust schemes that failed to fulfil payments, resulting in major losses for the victims.

The MoF said the SC is conducting investigations into several trust companies suspected of carrying out regulated capital market activities without a licence.

However, the details cannot be disclosed, as the cases are still under investigation, it added.

Effective Jan 1, 2026, following amendments to the Capital Markets and Services Act 2007 (CMSA), the SC has the authority to determine the types of trust companies and regulated activities that do not require a licence from the agency.

-- BERNAMA