Securities Commission managing director Kamarudin Hashim
KUALA LUMPUR: The Securities Commission (SC) plans to widen the sophisticated investors base by providing flexibilities within the calculation of high-net-worth individuals (HNWIs) threshold, said managing director Kamarudin Hashim today.
He said the SC would also expand the qualification criteria of sophisticated investors to account for their knowledge and experience as well as extend angel investors’ participation in other capital market products beyond the private markets and micro, small and medium enterprises space.
"This would ensure the basis of investor categorisation serves as the most effective means to categorise investors, which would enable them to be accorded the appropriate level of regulatory protection and facilitate capital formation,” he said.
Kamarudin said this in his keynote address at the International Institutional Investor Series organised by the Malaysian Association of Asset Managers today.
In addition to expanding the categorisation of sophisticated investors, he noted that the SC would also enable fund managers to offer foreign funds to high-net-worth entities and institutional investors in the Malaysian capital market.
"This will be facilitated through the introduction of a ‘foreign exempt schemes’ framework which will allow foreign fund operators that are a related corporation to an SC-licensed fund manager to lodge and launch their foreign funds.
"In addition to expanding the scope of product offerings for fund managers, this framework, which is expected to be launched by the end of the year, will add greater diversity to the onshore fund options in the domestic capital market,” Kamarudin said.
While the first phase of the "foreign exempt schemes” framework would target institutional investors and high net-worth entities, the SC is also reviewing the next phase of liberalisation to include HNWIs while ensuring controls are in place for parity between domestic and foreign fund managers.
"This will require close consultation and engagement with industry stakeholders, which we envision to take place in 2024,” said Kamarudin. - Bernama
