Malaysia, Singapore, and Thailand agree on changes to Asean Collective Investment Schemes framework


Malaysia, Singapore and Thailand authorities have agreed to commit to a revised version of the Asean Collective Investment Schemes (CIS) framework that will provide retail investors wider access to fund managers across the three countries.

The Securities Commission Malaysia, the Monetary Authority of Singapore, and the Securities and Exchange Commission of Thailand’s enhanced framework took effect on Friday (Feb 23), and incorporates feedback from industry consultations.

In its new form, the CIS framework will promote more cross-border offerings of Asean funds and allow fund managers to offer a broader range of fund products to investors in the region.

The enhancements have enabled a wider range of fund managers to participate, with a lowering qualifying criteria of US$350 million assets under management, down from the previous US$500 million.

A new criteria of reviewing fund authorisation applications within 21 calendar days has also shortened the time-to-market for the launch of funds.

Under the enhanced framework, participating fund managers have more flexibility to delegate the investment management of a fund by increasing from 20 per cent to 100 per cent the proportion of the fund’s assets that can be sub-managed by a manager that is not regulated by a signatory.

In 2014, the three authorities launched the CIS under the Asean Capital Market Forum to facilitate cross-border offers to retail investors.

It is part of a regional capital market integration plan endorsed by Asean Finance Ministers in 2009.