In line with measures to liberalise the fund management industry, the Securities Commission Malaysia has introduced the Foreign Exempt Scheme framework, providing high-net-worth entities and institutional investors greater onshore
access to foreign investment funds.
Additionally, the SC also introduced flexibility to wholesale fund managers seeking to invest in alternative investment products beyond the current conventional assets such as securities, derivatives, money market instruments, and deposits. These measures demonstrate the SC’s continuous commitment to enhance the depth and breadth of the capital market. The SC’s effort also aims to ensure an effective regulatory regime that facilitate product innovation while fostering an inclusive investment environment for investors with various risk appetites and needs.
The revised guidelines relating to these measures, which will take effect on 29 August 2023 include:
1) Guidelines for the Offering, Marketing, and Distribution of Foreign Funds (OMD Guidelines)
2) Guidelines on Unlisted Capital Market Products under the Lodge and Launch Framework (UCMP Guidelines)
The revised OMD guidelines also allow secondary listing of non-plain vanilla foreign exchange-traded funds (ETF), promoting more investment opportunities in the Malaysian market. This is subject to five such ETFs per foreign operator. The enhancements to the guidelines provide clarity on expectations regarding the responsibilities of submitting parties for foreign funds, ensuring a clear and streamlined process.
