PETALING JAYA: The Securities Commission (SC) has updated its criteria for sophisticated investors, widening the scope of investment options.
In a statement, the SC said it had made several amendments to the Capital Markets and Services Act 2007 (CMSA), which came into force since yesterday.
“The amendments, effected through changes made to schedules six and seven of the CMSA, have widened the categories of sophisticated investors to 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 related companies with assets of more than RM10mil.
“This will allow more investors to expand their investment options while issuers can now tap into a larger pool of sophisticated investors.”
The SC’s updated categories of sophisticated investors include accredited investors, high-net worth entities and high-net worth individuals.
According to the SC, accredited investors comprise a unit trust scheme, private retirement scheme or prescribed investment scheme; Bank Negara; licensed or registered person; as well as exchange holding company, stock exchange, derivatives exchange, approved clearing house, central depository or recognised market operator.
The SC’s accredited investors list includes a corporation that is licensed, registered or approved to carry on any regulated activity or capital market services by an authority in Labuan, or outside Malaysia which exercises functions corresponding to the functions of the SC.
Meanwhile, the SC categorises high-net worth entities as a company that is registered as a trust company under the Trust Companies Act 1949 and has assets under its management exceeding RM10mil or its equivalent in foreign currencies.
High-net worth entities also include a corporation that is a public company under the Companies Act 2016, which is approved by the SC to be a trustee under the Act and has assets under its management, exceeding RM10mil or its equivalent in foreign currencies; or is carrying on the regulated activity of fund management solely for the benefit of its related corporations and has assets under its management exceeding RM10mil or its equivalent in foreign currencies.
For high-net worth individuals, these are persons whose total net personal assets, or total net joint assets with his or her spouse, exceeding RM3mil or its equivalent in foreign currencies, excluding the value of the individual’s primary residence; as well as those whose gross annual income exceeds RM300, 000 or its equivalent in foreign currencies in the preceding 12 months.
High-net worth individuals also include persons who jointly, with his or her spouse, has a gross annual income exceeding RM400, 000 or its equivalent in foreign currencies in the preceding 12 months; or individuals whose total net personal investment portfolio or total net joint investment portfolio with his or her spouse, in any capital market products, exceeds RM1mil or its equivalent in foreign currencies.
Separately, the SC said amendments to schedules six and seven of the CMSA 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.“Meanwhile, schedule five of the CMSA, which sets out the type of corporate proposals that do not require the SC’s approval, has also been amended.”
These include initial exchange offering of digital assets through a recognised market operator; and an initial public offering or cross-listing of the shares of a public company or listed corporation on a stock exchange outside Malaysia.