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.