M'sia, S'pore, Thailand in capital markets integration

M'sia, S'pore, Thailand in capital markets integration

PETALING JAYA - Malaysia's Securities Commission (SC), the Monetary Authority of Singapore (MAS) and Thailand's Securities and Exchange Commission (SEC) have moved a step closer towards regional capital market integration, which will be a boost for investors in the three countries.

The regulators have signed MoU to set up the ASEAN CIS framework to allow cross-border offering of collective investment schemes (CIS), moving a step closer towards regional capital market integration.

The framework, set to take effect in the first half of 2014, would enable fund managers operating in a member jurisdiction to offer CIS constituted and authorised in that jurisdiction to retail investors in other member jurisdictions under a streamlined authorisation process.

This would mean a wider choice of investment schemes for investors in Malaysia, Singapore and Thailand.

SC chairman Datuk Ranjit Ajit Singh said in a statement that the MoU, which represented yet another significant milestone for the ASEAN Capital Markets Forum (ACMF), was in line with the goal of promoting greater regional cross-border flows and to build 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," he explained.

Under the MoU, the SC, MAS and SEC agreed to adopt a set of common standards to govern the cross-border offering of ASEAN CIS. The adoption of the common standards by the signatories would allow fund managers to establish a suite of CIS that could potentially be offered in all three jurisdictions, which is currently not possible.

The common standards are also to ensure that fund managers who tapped on the framework had the necessary expertise and experience, and the schemes offered under the framework were managed based on industry best practices.

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