PETALING JAYA: The Securities Commission Malaysia (SC) has introduced the foreign exempt scheme (FES) framework to provide high-net-worth entities and institutional investors greater onshore access to foreign investment funds.
This initiative is part of its measures to liberalise the fund management industry, SC said in a statement today.
The regulator has also introduced greater flexibility for wholesale fund managers, allowing them to invest in alternative investment products beyond conventional assets like securities, derivatives, money market instruments, and deposits.
These efforts ensure an effective regulatory regime that facilitates product innovation while fostering an inclusive investment environment for investors with various risk appetites and needs, according to the statement.
As part of SC’s commitment to expanding the capital market, its chairman Awang Adek Hussin said this approach provides access to a broader spectrum of investment choices.
Furthermore, it offers corporations and institutional investors the opportunity to diversify their portfolios.
“The FES framework opens up new avenues for high-net-worth entities and institutional investors to access funds offered by foreign players whose corporations are related to SC-licensed fund management companies,” he said.
In addition, he said these measures enable fund managers to offer more products and investment choices to investors locally to promote innovation and accessibility.
The revised guidelines linked to these measures have come into effect today.
These enhancements aim to offer greater clarity regarding the expectations placed on submitting parties for foreign funds, resulting in a more transparent and streamlined process.
The FES framework and the revised offering, marketing, and distribution of foreign funds (OMD) and unlisted capital market products under the lodge and launch framework (UCMP) guidelines are available on the SC’s website at https://www.sc.com.my/regulation.