28 March 2018
With effect from 23 February 2018, the ASEAN Collective Investment Schemes (CIS) Framework (“Framework”) has been enhanced to promote more cross-border offerings of ASEAN funds and allow fund managers to offer a broader range of fund products to investors across Singapore, Malaysia and Thailand. This development follows the recent signing of a Memorandum of Understanding (MoU) by the Monetary Authority of Singapore (“MAS”), the Securities Commission Malaysia (SC) and the Securities and Exchange Commission of Thailand (SEC) to enhance the Framework.
Incorporating feedback from extensive industry consultations, the key enhancements to the Framework will:
- enable a wider range of fund managers to participate in the Framework by lowering the qualifying criterion to US$350 million assets under management from US$500 million;
- shorten the time-to-market for the launch of funds, as the signatories have committed to reviewing within 21 calendar days a complete application from fund managers for the authorisation of a fund; and
- give participating fund managers more flexibility to delegate the investment management of a fund by increasing from 20% to 100% the proportion of the fund’s assets that can be sub-managed by a manager that is not regulated by a signatory.
The new set of “Standards of Qualifying CIS” which fund managers under the Framework have to adhere to can be found on the ASEAN Capital Markets Forum (“ACMF”) website www.theacmf.org or by clicking here.
By way of background, the Framework is one of the initiatives undertaken by ACMF and is aimed at enabling fund managers operating in a signatory jurisdiction to offer funds constituted and approved in that jurisdiction to retail investors in other signatory jurisdictions under a streamlined authorisation process.