In respect of a related party transaction where the percentage ratio is 5% or more but less than 25%, an independent adviser must be appointed by the listed corporation in respect of such transaction. Does the independent adviser have to provide a confirmation to Bursa Securities of its eligibility to act as an independent adviser?
No, such a confirmation by an independent adviser is not required under the ACE LR and only a general undertaking letter under Rule 2.21(1) of the ACE LR is required. However, an independent adviser must ensure its independence within the definition of independence under Rule 1.01 of the ACE LR. Under Rule 10.08(5) of the ACE LR, Bursa Securities has the discretion not to allow an independent adviser to continue to act or be appointed as an independent adviser if in its opinion, the adviser is deemed not to be independent. Bursa Securities may also take enforcement action against independent advisers who misrepresented their independence.