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Public and private enforcement strategies in regulating market misconduct and continuous disclosure- an overview of issues and challenges in Malaysia

Mohd. Sulaiman, Aiman @ Nariman (2014) Public and private enforcement strategies in regulating market misconduct and continuous disclosure- an overview of issues and challenges in Malaysia. In: Comparative Enforcement of Corporate and Securities Law in Asia 2014, 17th-18th July 2014, Singapore Supreme Court Auditorium, Singapore. (Unpublished)

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Abstract

This paper explains the public and private enforcement of market misconduct and disclosure obligation in Malaysia, explores the changing concepts and strategies underlying enforcement of corporate and securities law and discuses what are the emerging legal issues in Malaysia. Malaysia’s reputation as a reputable and reliable capital market suffers mainly from (perception of) lack of effective enforcement. Public enforcement however is on the increase, assisted by enforcement of corporate and securities law involving frontline regulators such as the stock exchange. On this point, the paper clarifies the enforcement activities of Bursa Malaysia and explains the value and relevance of the stock exchange enforcement actions to the integrity of the Malaysian capital market. However, while private enforcement activities regarding corporate law’s contravention are quite common, the same cannot be said of enforcement of market misconduct and failure to comply with disclosure obligations. > > The article then explores the challenges arising out of changes in the regulatory landscape. Within the regulatory framework for corporate and securities law, public enforcement mechanism have often been identified with the role of the regulatory authority enforcing administrative and /or criminal sanction and private enforcement is synonymous with actions by private litigants seeking civil remedies. However, regulatory authorities are now clothed with power to bring civil actions and private bodies are increasingly exercising public functions. In addition, an area which is gaining attention from regulators and regulatees relates to private enforcement which rides on the 'coat-tail' of public enforcement, particularly how this phenomena could impact on the role, functions and powers of regulators. Emerging legal issues relate to the use of immunity and whistle-blowing protection provisions and settlement agreements with regulators and their relevance to private enforcement actions. There is thus a need to define the rules of interaction or ‘partnership’ between these two enforcement models. Any unresolved conflict between these two could undermine enforcement activities and adversely affect the regulatory environment. >

Item Type: Conference or Workshop Item (Full Paper)
Additional Information: 1872/47602
Uncontrolled Keywords: public enforcement, strategy, market misconduct, Malaysia
Subjects: K Law > K Law (General)
K Law > KPG Malaysia
Kulliyyahs/Centres/Divisions/Institutes: Ahmad Ibrahim Kulliyyah of Laws > Department of Civil Law
Depositing User: Prof Aiman Nariman Mohd-Sulaiman
Date Deposited: 22 Mar 2016 11:46
Last Modified: 22 Mar 2016 11:46
URI: http://irep.iium.edu.my/id/eprint/47602

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