Securities Commission Considers Expanding Approved Advisers for LEAP Market Listings

LEAP Market Listings
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The Securities Commission (SC) of Malaysia is exploring the possibility of allowing startup accelerators, venture capitalists, and other ecosystem players to serve as approved advisers for the LEAP Market listing on Bursa Malaysia. This move aims to diversify the pool of listing advisers and provide more support for small and medium-sized enterprises (SMEs) seeking to access the capital market.

The SC is reviewing the regulatory requirements surrounding the eligibility criteria for approved advisers. This initiative will encourage a more competitive market in the advisor space and a better pool of expertise to support SMEs. The approved advisers may include legal and accounting firms, startup accelerators, remisiers, venture capital, and private equity players.

Currently, companies seeking to list on the LEAP Market must appoint an adviser licensed by the SC and registered with Bursa Malaysia. The adviser is responsible for assessing the suitability of the applicant, submitting initial listing applications, preparing information memorandums, and guiding the company to comply with post-listing requirements.

The SC’s “Catalysing MSME and MTC Access to the Capital Market: Five-Year Roadmap” launched on Thursday outlines plans to help MSMEs and MTCs raise RM40 billion from the capital markets by 2028. The SC estimates that there are as many as 28,000 MSMEs and MTCs with annual sales under RM500 million that have the potential to tap into the capital market.

Additionally, the SC aims to allow alternative means of remuneration for advisors, such as non-cash options, to provide financial management flexibility and help financially strained SMEs reduce their cash outflows.

The Securities Commission’s initiative to expand the pool of approved advisers for the LEAP Market listing is a significant step in supporting SMEs’ access to the capital market. By diversifying the advisor pool and providing alternative remuneration options, the SC aims to create a more competitive and supportive ecosystem for MSMEs and MTCs to raise funds and grow their businesses.

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