The regulatory regime for financial services in Malaysia is governed by the Financial Services Act 2013 (FSA), the Islamic Financial Services Act 2013 (IFSA), and the Capital Markets and Services Act 2007 (CMSA). Rules, orders and regulations promulgated under the respective legislation are also applicable. The CBM administers the FSA and the IFSA, whereas the SC administers the CMSA.

In addition, the CBM and the SC have extensive powers to issue guidelines, handbooks, circulars and standards from time to time. Such guidelines, handbooks, circulars and standards set out, among others, the prudential and operational requirements that must be complied with by the relevant financial institutions and capital market intermediaries. For example, the CBM issued a framework setting out the prudential requirements applicable to banks and insurers. The SC issued a licensing handbook setting out the licensing and operational requirements applicable to capital market intermediaries.