Securities Commission Malaysia issues revised Guidelines on Unlisted Capital Market Products under Lodge and Launch Framework
28 October 2022
On 1 September 2022, the Securities Commission Malaysia (“SC”) revised the Guidelines on Unlisted Capital Market Products under the Lodge and Launch Framework (“LOLA Guidelines”) as follows:
- Incorporating applicable amendments with appropriate modifications pursuant to SC’s Public Consultation Paper No. 1/2020 issued on 11 November 2020 in relation to the proposed amendments to the Guidelines on Unit Trust Funds and consequential amendments to the Guidelines on Exchange-Traded Funds and Guidelines on Private Retirement Schemes; and
- Housekeeping amendments throughout the LOLA Guidelines to provide greater clarity and consistency.
The key amendments are as follows:
- Chapter 2: Structure - Establishing a wholesale fund
- Paragraph 2.08A was amended to replace the term “gold” with “metal” following the liberalisation of the requirements for investments in collective investment scheme; and
- Paragraph 2.15 was amended to allow distribution to be made out of capital with prescribed requirements relating thereto.
- Chapter 4: Continuous obligations
- Paragraph 01C was included to allow the use of amortise cost accounting; and
- Paragraphs 4.07 to 4.08B were amended to prescribe the threshold for rectification of incorrect valuation or pricing.