Recital 12

(12)The SC, as the supervisor of CCPs, monitors CCPs in Malaysia to ensure compliance with the primary rules and with the CCPs internal rules and procedures on an ongoing basis. Day-to-day supervision is conducted by the SC on a regular basis in accordance with section 15(f) of the Securities Commission Malaysia Act 1993 (Act 498) ⁵ (Akta Suruhanjaya Sekuriti Malaysia 1993), to identify, assess, prioritise and mitigate risks. The SC may conduct investigations and inspections into suspected infringements, obtain books and records, or require individuals to participate in interviews under oath or affirmation. The SC has the comprehensive powers to ensure compliance and may withdraw the authorisation and the approval of internal rules and procedures, in accordance with Section 39 of the CMSA, issue conditions, requirements or directions in accordance with Sections 26, 354, 355 of the CMSA, and impose sanctions on CCPs in accordance Section 354 of the CMSA.