SKP Issues Standards To Regulate BNPL, Five Other Consumer Credit Activities
KUALA LUMPUR, June 5 (Bernama) -- The Consumer Credit Commission (SKP) has issued the Authorisation Standards (AS) and Conduct Standards (CS), which will regulate buy now pay later (BNPL) schemes and five other previously unregulated business activities under Phase 1 of the Consumer Credit Act 2025 (CCA).
The two standards are aimed at establishing the licensing, registration and conduct requirements and obligations towards the implementation of the Consumer Credit Act 2025 (CCA).
“The AS and CS, applicable to the six key business activities under Phase 1 of the CCA, set out these obligations in a clear, structured and consistent manner as part of SKP's efforts to promote proper conduct among non-bank credit providers and credit service providers,” SKP said in a statement today.
Under Phase 1 of the Act's implementation, six key business activities will be regulated by SKP that were previously unregulated, namely BNPL schemes, factoring, leasing, debt collection, impaired loan or financing acquisition, as well as debt counselling and management.
SKP executive chairman Abu Hassan Alshari Yahaya said the issuance of the AS and CS marks the first foundational standards under the CCA, setting clear expectations for market entry and conduct. "As the competent authority body, SKP is committed to ensuring that industry practices align with our mandate to safeguard consumer interests while supporting sustainable industry growth," he added.
The Authorisation Standards stipulate the requirements and processes related to registration and licensing for an Authorised Entity, while the Conduct Standards provide comprehensive obligations to promote fair, responsible and professional practices across the consumer credit industry.
The issuance of the two standards follows SKP's recent industry briefing sessions held on May 18 and 19, which were attended by more than 400 industry practitioners. The sessions were well received, and industry participants acknowledged the support received ahead of the need for compliance with the standards, towards the development of a more responsible consumer credit industry.
Further engagement efforts will be carried out as SKP plans to conduct regional industry briefings as part of ongoing efforts to ensure industry readiness ahead of licensing and registration requirements that will come into force at the end of the year.
-- BERNAMA