SC and others ink Asean cross-border framework
THE Securities Commission (SC) of Malaysia, the Monetary Authority of Singapore (MAS) and the Securities and Exchange Commission of Thailand have signed a memorandum of understanding (MoU) to establish the Asean CIS Framework for cross-border offering of collective investment schemes (CIS).
The three authorities are targeting to implement the framework in the first half of next year, according to the statement issued by the Asean Capital Markets Forum (ACMF) yesterday.
The framework enables fund managers operating in a participating country to offer CIS authorised in that country to retail investors in other participating countries under a streamlined authorisation process.
"The ACMF has achieved another milestone with the signing of the MoU, which is in line with the goal of promoting greater regional cross-border flows and building brand recognition of Asean as an asset class.
"The framework aims to create a more efficient environment to facilitate cross-border offerings of investment funds and brings us a step closer towards achieving an Asean passporting regime," SC chairman Datuk Ranjit Ajit Singh said.
Ranjit signed on behalf of the SC, while Thailand's Securities and Exchange Commission was represented by its secretary-general, Vorapol Socatiyanurak and MAS, by its assistant managing director Lee Chuan Teck.
Under the MoU, the signatories agreed to adopt a set of common standards to govern the Asean CIS. This allows fund managers to establish a suite of CIS that can be offered in all three jurisdictions, which is currently not possible.
They are also committed to reviewing applications made under the framework in streamlined manner, which means fund managers now have a direct and efficient channel to offer their schemes in participating countries. To facilitate the smooth operation of the framework, they will issue a handbook to provide guidance to fund managers on various administrative and procedural matters.
The signatories have also agreed to an arrangement to provide mutual assistance in relation to the supervision of cross-border offering of collective investment schemes to non-retail investors.
Meanwhile, local industry players welcomed the framework agreed between the three parties.
Federation of Investment Managers Malaysia public interest director Datuk Meriam Yaacob said there will be a wider selection of investment products for investors in the participating countries, thus enabling greater diversification of their investments.