Investment Fund Market Guide – Malaysia

03.11.2023

Key features (Register market)

Yes/No

Remarks

Settlement free of payment

Yes

Settlement against payment

Yes

Refer to CBL’s Eligible currencies and the fund currency specified in fund prospectus.

Disclosure Requirements

Yes

Refer to Disclosure Requirements – Investment Funds – Malaysia.

Restrictions on client

Yes

Refer to Holding Restrictions – Investment Funds – Malaysia.

Restrictions on cash instructions

Yes

Refer to Holding Restrictions – Investment Funds – Malaysia.

Restrictions on settlement

No

 

Remarks

Market type / link type (Settlement link)

Register market and CSD link

Eligible fund types in CBL

Register market: Malaysian unit trust and wholesale funds with trust or custodial structure, Private Equity Funds, Hedge Funds.

CSD linka: ETFs only

a. Please refer to the Market Link Guide – Malaysia for more details on funds on CSD link.

Eligible fund types in CBL

Register market

Pursuant to the law of Malaysia, the following unlisted funds are eligible to hold in CBL.

(a) Unit Trust Funds: Governed by the Malaysian Capital Markets and Services Act (CMSA), and are generally:

  • Subjected to the Guidelines on Unit Trust Funds (UTF Guidelines) and Guidelines on Marketing and Distribution of Unit Trust Fund.

(b) Wholesale Funds: Governed by the Guidelines on the Registration of Venture Capital and Private Equity Corporations and Management Corporations, Capital markets and Services Act 2007 (“CMSA”), and are generally:

  • Defined as unit trust schemes offered to non-retail (wholesale) investors only.
  • Established under a trust or custodial structure.

(c) Private Equity Funds Governed by the Guidelines on the Registration of Venture Capital and Private Equity Corporations and Management Corporations, Capital markets and Services Act 2007 (“CMSA”), and are generally:

  • Established as a Limited Liability Partnership.

(d) Private Hedge Funds: Governed by the Guidelines on the Registration of Venture Capital and Private Equity Corporations and Management Corporations, Capital markets and Services Act 2007 (“CMSA”) and Guidelines on Compliance function for Fund Management Companies, and are generally:

  • Established as unit trust scheme.

CSD Link

(Clients should refer to the Market Link Guide – Malaysia for more information).

Exchange Traded Funds (ETFs) – Listed ETFs have the same settlement process as listed equities.