A Guide To Selling Regulated Investment Funds In Asia June 2012 - Malaysia

Author:Mr Andrew Bates
Profession:Dillon Eustace
 
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Overview Irish investment funds may be sold in Malaysia in compliance with the provisions of Part VI of the Capital Markets and Services Act 2007 ("CMSA"), which is administered by the Securities Commission of Malaysia ("SC") and the Guidelines for the Offering, Marketing and Distribution of Foreign Funds issued by the SC. ("Foreign Funds Guidelines"). Under the Foreign Funds Guidelines, the SC only permits foreign funds that are recognized funds to be offered, marketed and distributed in Malaysia in accordance with its terms. Presently, the recognized funds under the Foreign Funds Guidelines are limited to – Islamic funds which are constituted and domiciled in the Dubai International Financial centre, and notified or registered with the Dubai Financial Services Authority; and Islamic funds (excluding hedge funds and leveraged funds) which are authorized and primarily regulated by the Securities and Futures Commission Hong Kong ("SFC"), managed by SFC licensed managers, comply with the requirements set out in Appendix 2 to the Foreign Funds Guidelines, and domiciled in Hong Kong or jurisdictions that have broadly implemented International Organisation of Securities Commissions (IOSCO) Principles relating to collective investment schemes and are signatories to IOSCO Multilateral Memorandum of Understanding concerning consultation and cooperation and the exchange of information. So only Irish investment funds that fall within the definition of recognized funds in the Foreign Funds Guidelines may be offered, marketed or distributed in Malaysia. As detailed below the prospectus of any Irish domiciled fund being sold in Malaysia may need to comply with certain requirements. It should be noted that if any supplement or addendum to the Irish prospectus specific to investors domiciled in Malaysia is prepared, such document will need to be submitted to the Central Bank of Ireland in advance to ensure that there are no inconsistencies with the Irish prospectus. Regulation of securities The CMSA regulates securities offerings at two levels: (1) licensing of regulated activities as defined in Schedule 2 to the CMSA, and (2) the requirements for issuing or offering of securities set out in Part VI of the CMSA (the "Part VI Provisions"). The definition of "securities" is broadly defined in the CMSA to include shares in or debentures of, a body corporate or an unincorporated body and unit trusts as defined in the CMSA, and includes any right, option or...

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