KENANGA INVESTMENT BANK BERHAD INTEGRATED ANNUAL REPORT 2024 WE ARE KENANGA OUR SUSTAINABILITY APPROACH LEADERSHIP STATEMENT HOW WE ARE GOVERNED FINANCIAL STATEMENTS SHAREHOLDERS’ INFORMATION ADDITIONAL INFORMATION OUR VALUE CREATION APPROACH 119 118 The results reaffirm Kenanga Group’s high standards of ethics and integrity, with employees across all levels overwhelmingly recognising the organisation’s emphasis on ethical business practices: ETHICS AND COMPLIANCE STATEMENT ETHICS AND COMPLIANCE STATEMENT While the results are overwhelmingly positive, the Group acknowledges the feedback from a very small segment of employees indicating a need for greater visibility of leadership’s commitment to ethics. This valuable insight will guide targeted initiatives to further strengthen ethical leadership engagement and communication. The findings from the Ethics Survey will be leveraged to refine and enhance our ethical and compliance culture, ensuring that Kenanga Group continues to uphold the highest standards of integrity while continuously improving where necessary. • Tool for Regulatory Awareness and Compliance - Dissemination of Regulatory Issuances Group Regulatory plays an essential role in Kenanga Group’s regulatory landscape, ensuring employees remain informed of evolving regulatory requirements. In 2024, the team facilitated the dissemination of 281 revised and new frameworks, guidelines, and circulars, along with 23 consultation papers. These efforts are key to maintaining compliance with regulatory requirements across the organisation. - Enhancing Regulatory Awareness and Compliance To strengthen compliance awareness and ensure alignment with regulatory requirements, Group Regulatory has introduced two (2) key initiatives, Regulatory Brew and Regulatory EDGE. Both initiatives aim to provide employees with the necessary tools and processes to stay informed on regulatory updates and maintain a high standard of compliance. These efforts reflect our commitment to fostering a culture of responsibility, continuous improvement, and resilience in the ever-evolving regulatory landscape. • Contribution to Upholding AML/CFT/CPF Standards in the Capital Markets Industry Kenanga Group represented the capital markets industry during the recent Mutual Evaluation Exercise (“MEE”) by the Financial Action Task Force (“FATF”). This evaluation is critical in determining Malaysia’s international rating on Anti-Money Laundering (“AML”), Countering the Financing of Terrorism (“CFT”), and Counter-Proliferation Financing (“CPF”) compliance. The outcome of this assessment will significantly impact the nation’s global standing, financial reputation, economic stability, trade relations, and national security. Top Level Commitment SVP and Above 99.15% 0.85% AVP and VP 99.20% 0.80% Associate and SA 99.64% 0.36% Agree Agree Agree Disagree Disagree Disagree Professional Accountability SVP and Above 100.00% 0.00% AVP and VP 99.93% 0.07% Associate and SA 100.00% 0.00% Agree Agree Agree Disagree Disagree Disagree Personal Integrity SVP and Above 100.00% 0.00% AVP and VP 100.00% 0.00% Associate and SA 100.00% 0.00% Agree Agree Agree Disagree Disagree Disagree Number of Regulatory Issuances in 2024 120 100 80 60 40 20 0 67 BNM 97 SC 54 B.SEC 15 B.SEC. CLR 20 B.DER 16 B.DER. CLR 12 B.DEPO 20 FIMM 3 ORS Regulatory EDGE A structured review exercise that tracks new and revised regulations, ensuring affected departments take necessary actions. The initiative includes verification elements to assure the Board on the organisation’s compliance level. Departments use this process to update policies, conduct training, upgrade systems, and issue memos. Regulatory Brew An engaging coffee-themed newsletter that consolidates weekly regulatory updates, compliance trends, and non-compliance issues. By presenting information in a digestible and visually appealing format, it encourages employees to stay informed and integrate compliance into their daily routines to reinforce compliance obligations. In preparation for the FATF evaluation, extensive efforts were undertaken, including: - A comprehensive walkthrough of the Group’s end-toend AML processes, alongside in-depth discussions with regulators to enhance understanding of the organisation’s AML/CFT/CPF compliance framework. - Collaborative engagement with regulators through information requests, questionnaires, and statistical surveys to provide greater insights into the capital market’s AML/CFT/CPF practices. Kenanga Group remains committed to maintaining the highest AML/CFT/CPF compliance standards, ensuring that the capital markets industry continues to uphold regulatory expectations and safeguard Malaysia’s financial integrity. ENSURING STRONG COMPLIANCE AND ETHICAL PRACTICES The Board oversees ethics and compliance risks, ensuring the seamless execution of strategies, frameworks, and policies. Through collaboration with stakeholders, Group Regulatory integrates governance and business direction, fostering a culture where professionalism, ethics, and compliance are deeply embedded. • Commitment to Anti-Fraud, Bribery and Corruption Kenanga Group adheres to the Malaysian Anti-Corruption Commission Act 2009 (“MACCA”) and all relevant laws, regulations, and guidelines governing fraud, bribery, and corruption. Our stance is unequivocal – zero tolerance towards any form of fraudulent or corrupt activities. This expectation extends to our Board, Senior Management, employees, and all third parties engaged with the Group in any capacity. To reinforce this commitment, the Group Anti-Fraud, Bribery, and Corruption Policy (“AFBC Policy”) serves as the foundation for managing risks associated with fraud, bribery, and corruption. It outlines key principles, including leadership commitment, enterprise-wide risk assessments, control mechanisms, monitoring protocols, and training initiatives. Complementing the AFBC Policy, the Group Anti-Fraud, Bribery, and Corruption Reporting Procedure (“AFBC Reporting Procedure”) provides comprehensive guidance on reporting misconduct related to fraud, bribery, and corruption, ensuring appropriate actions are taken. Notes: • BNM – Bank Negara Malaysia • SC – Securities Commission Malaysia • B.SEC – Bursa Malaysia Securities Berhad • B.SEC.CLR – Bursa Malaysia Securities Clearing Sdn Bhd • B.DER – Bursa Malaysia Derivatives Berhad • B.DER.CLR – Bursa Malaysia Derivatives Clearing Berhad • B.DEPO – Bursa Malaysia Depository Sdn Bhd • FIMM – Federation of Investment Managers Malaysia • ORS – Others
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