SC widens categories of sophisticated investors

“The amendments, effected through changes made to Schedules 6 and 7 of the CMSA, have widened the categories of sophisticated investors, ” it said.

KUALA LUMPUR: The Securities Commission Malaysia (SC) has widened the categories of sophisticated investors to allow more investors to expand their investment options while issuers can now tap into a larger pool of sophisticated investors.

The SC said in a statement these were among the several amendments to the Capital Markets and Services Act 2007 (CMSA), which came into force on Thursday.

“The amendments, effected through changes made to Schedules 6 and 7 of the CMSA, have widened the categories of sophisticated investors, ” it said.

The SC said sophisticated investors will now include among others, individuals with investments of RM1mil in capital market products, either on their own or through joint accounts with their spouse; CEOs and directors of licensed or registered persons under the CMSA; and corporations that manage funds of their companies with assets of more than RM10mil.

For the full list of qualifying criteria of sophisticated investors, please click at https://www.sc.com.my/api/documentms/download.ashx?id=72b64b5c-313b-44dc-9841-36e0d50906ac

“In addition, the amendments to Schedules 6 and 7 will enable Bursa Malaysia to undertake the registration of ACE Market prospectuses effective Jan 1, 2022. Upon the transfer of the registration function, which is currently assumed by the SC, Bursa will become the one-stop centre for all approvals in relation to ACE Market listing, ” it said.

The SC also said Schedule 5 of the CMSA, which sets out the type of corporate proposals that do not require the SC’s approval, has also been amended to include the following:

A) Initial exchange offering of digital assets through a recognised market operator; and

B) An initial public offering (IPO) or cross-listing of the shares of a public company or listed corporation on a stock exchange outside Malaysia.

For more information on the amendments, click at https://www.sc.com.my/regulation/acts/capital-markets-and-services-act-2007