The introduction of the private retirement scheme framework was a result of recommendations made by the Securities Commission Malaysia (SC) to the Government to accelerate development of the private pension industry in Malaysia. Private retirement schemes, which are an integral feature of the private pension industry, seek to enhance choices available for all Malaysians, whether employed or self-employed, to supplement their retirement savings under a well-structured and regulated environment.
The Guidelines on Private Retirement Schemes (guidelines) are issued by the SC pursuant to section 377 of the Capital Markets and Services Act 2007 (CMSA). These guidelines are to be complied with by any person intending to act as a private retirement scheme provider (PRS Provider) in establishing, offering or providing a private retirement scheme or to hold himself as establishing, offering or providing a Scheme as well as the requirements to be complied with by a Scheme Trustee.
These guidelines are aimed at providing the regulatory and operational requirements that would safeguard the interests of contributors to the Scheme.