SC Introduces Major Reform in Approval Regime With Lodge and Launch Framework
15 June 2015   |   Kuala Lumpur
The Securities Commission Malaysia (SC) today brought into effect the Lodge and Launch framework for wholesale products and the “Guidelines on Unlisted Capital Market Products” issued on 9 March 2015, a major reform in the SC funds and product approval regime which will significantly reduce time-to-market for wholesale products.
The Lodge and Launch framework is intended to shorten time-to-market by enabling wholesale products to be launched once the required information is lodged with the SC via its online submission system, as compared to the current 14-21 days approval timeframe. Wholesale products that are covered under the framework include wholesale funds, structured products, bonds, sukuk and asset-backed securities.

The introduction of this framework is in line with SC’s new regulatory philosophy which advocates proportionality of regulation and recognises the maturity of the Malaysian capital market and the sophistication of investors within the wholesale market.

With this liberalisation, SC will increase its focus on conduct regulation and product surveillance to ensure that all who are involved in the wholesale market discharge their due diligence and disclosure obligations as well as uphold the principle of fair treatment of investors.

The Guidelines for the Lodge and Launch framework supersedes the existing guidelines on the various wholesale products. The Guidelines, Lodgement Kit and frequently-asked questions and answers are available for reference here.

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