Kuala Lumpur, 1 December 2009
SC releases Issuer Eligibility Guidelines – Structured Warrants
The Securities Commission Malaysia (SC) today released the Issuer Eligibility Guidelines – Structured Warrants (the eligibility guidelines) which will enable the SC to continue to assess the suitability of structured warrants issuers, as part of the efforts to maintain market confidence and enhance investor protection.
Under the eligibility guidelines, structured warrants issuers are required to submit a declaration to the SC confirming that they comply with the requirements pertaining to, amongst others, issuer’s risk management measures, sales and marketing practices and internal control procedures. The declaration must be submitted at least one month prior to the submission of prospectus for structured warrants issues for registration by the SC.
Since the disapplication of the SC’s Structured Warrants Guidelines following the new equity fund-raising framework which became effective on 3 August 2009, the approval for the issuance and listing of structured warrants has moved from the SC to Bursa Malaysia. The SC would, however, continue to vet and register structured warrants prospectuses to ensure adequate and meaningful disclosures to investors. At the same time, the SC will continue to assess the suitability of structured warrants issuers through the introduction and application of the eligibility guidelines.
The eligibility guidelines are released following a three-week public consultation which ended on 7 October 2009. In finalizing the guidelines, the SC considered all comments on the exposure draft received from industry players including the investment banks which are existing issuers of structured warrants.
The guidelines are effective immediately and are available here.
SECURITIES COMMISSION MALAYSIA