Kuala lumpur: 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).

According to BERNAMA News Agency, the MoF stated that this initiative aims to ensure a clearer and more effective implementation of the framework for regulating such cash trust scheme activities. "The cash trust-related framework will be introduced in the near future," the ministry mentioned in a written reply published on the Parliament website.

The response came in answer to a query from Lim Lip Eng (PH-Kepong), who sought clarification regarding issues involving cash trust schemes that failed to fulfill payments, leading to significant financial losses for the victims involved.

Furthermore, the MoF indicated that the SC is currently investigating several trust companies suspected of conducting regulated capital market activities without the necessary licensing. However, specific details remain undisclosed as the investigations are still ongoing.

The amendments to the Capital Markets and Services Act 2007 (CMSA) grant the SC the authority, effective January 1, 2026, to determine the types of trust companies and regulated activities that may not require a licence from the agency.