Asean stock exchange authorities agree on common framework
By Digital News Asia March 5, 2015
- Five qualifying Asean funds approved
- Also endorsed the Asean Capital Market Development Programme
ASEAN stock exchange authorities and regulators have agreed have signed a Memorandum of Understanding (MoU) to establish a Streamlined Review Framework for the Asean Common Prospectus.
The Association of South-East Nations (Asean) member countries also endorsed the Asean Capital Market Development Programme, aimed at extending mutual assistance to all markets within the region to facilitate individual and regional market development.
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This programme will be tailored to the needs of specific countries and aligned with the objectives of the Asean Capital Markets Forum (ACMF) in achieving greater regional interconnectivity, ACMF said in a statement.
Those who signed the MoU for the Common Prospectus are the Securities Commission Malaysia (SC); the Monetary Authority of Singapore (MAS); the Securities and Exchange Commission (SEC) Thailand; and the Singapore Exchange (SGX).
The signing ceremony was held in conjunction with the 22nd ACMF meeting in Kuala Lumpur hosted by the SC, the current Chair of ACMF.
The Streamlined Review Framework, an initiative under the ACMF Implementation Plan endorsed by the Asean Finance Ministers, will enhance Asean’s attractiveness as a fund-raising centre, ACMF said in a statement.
Under the Framework, issuers planning to offer or list equity or plain debt securities can now expect a shorter time-to-market and faster access to capital across signatory countries through a streamlined review process, it added.
The MoU signatories target to implement the Framework by the third quarter of 2015, with a handbook to be jointly issued.
The handbook will provide guidance on the various administrative and procedural matters including the criteria for issues, the application procedures and the review timeline.
The ACMF meeting also announced the authorisation for five funds as Qualifying Collective Investment Schemes (CISes) under the Asean Framework for the cross-border offering of such schemes, which was implemented in August 2014.
The five qualified funds were approved by the SC and MAS while the SEC Thailand is in the process of reviewing one fund application.
These qualified funds are allowed to be offered to retail investors in the signatory countries including Malaysia, Singapore and Thailand.
The ACMF meeting has also approved the proposal to develop a five year Action Plan from 2016-2020, which will focus on ensuring seamless access to capital and investments within a connected regional market.
The ACMF was set up in 2004 to promote freer flow of capital and greater connectivity of Asean capital markets.
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