20 January 2022

On 21 December 2021, Securities Commission Malaysia (“SC”) liberalised the unit trust fund framework. The new framework will support an investment ecosystem that is more diversified, and provide a catalyst for product offerings as part of wealth management solution to meet investors’ retirement objectives, including the offering of wealth decumulation products.

The amendments in the Guidelines on Unit Trust Funds will take effect on 1 March 2022 and includes:

  • expanding the list of permissible investments by unit trust funds;
  • enhancing the operational processes in managing a fund;
  • providing further clarity on existing requirements for market participants;
  • allowing unit trust funds to undertake more activities for the purpose of efficient portfolio management; and
  • strengthening risk management requirements at enterprise and fund levels, including the requirement for fund information to be made available on the management companies’ websites.