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The Securities Commission Malaysia (SC) today sought feedback from the public on its proposed amendments to the Guidelines on Unit Trust Funds (Unit Trust Guidelines). The two-month consultation process is part of the SC’s ongoing efforts to enhance market competitiveness and ensure the continuous development of the Malaysian unit trust industry.
The SC has outlined 30 proposals as part of the consultation paper, ranging from liberalising the types of investments a fund can consider, to amendments on strengthening risk management processes of fund management companies. The SC is considering enhancements to operational requirements, including dealing in and valuation of a fund. To ensure consistency in policy with unit trust funds, the SC is also considering making some of the proposals applicable to exchange-traded funds (ETF) and private retirement schemes (PRS).
These proposed new enhancements will facilitate greater competitiveness in the industry and provide investors access to a wider range of products, while maintaining adequate investor protection.
The consultation paper is available on the SC’s website . Interested parties are invited to submit their feedback via www.sc.com.my/survey-cp01-2020 by 10 January 2021. The public can also email to MISConsultation@seccom.com.my for further query.
In undertaking the review of the Unit Trust Guidelines and formulating this Public Consultation Paper, the SC has taken into consideration the evolving needs of investors, development and regulatory requirements in other jurisdictions, as well as feedback gathered from various stakeholder engagement sessions, including at the recently concluded SC industry dialogue.
Unit trust funds are the largest component of the Malaysian Collective Investment Scheme industry. As at 30 September 2020, there are 39 locally-incorporated management companies approved to offer 693 unit trust funds with a total net asset value (NAV) of RM490.3 billion.
