31 January 2018
On 19 December 2017, the Securities Commission Malaysia (“SC”) issued Guidelines on Sustainable and Responsible Investment (“SRI”) Funds (“Guidelines”) to facilitate and encourage greater growth of SRI funds in Malaysia. The Guidelines enable funds to be designated as SRI funds, widening the range of SRI products in the market and attracting more investors in the SRI segment. The Guidelines will apply to fund products within the SC’s oversight, such as unit trust funds, real estate investment trust funds, exchange-traded funds, and venture capital and private equity funds. The Guidelines will also introduce additional disclosure and reporting requirements that aim to encourage greater transparency in investment policies and strategies of SRI funds. The Guidelines will also be applicable for both conventional and Shariah-compliant funds.