FAQs on the Qualified Issuer Framework

FREQUENTLY ASKED QUESTIONS ON THE QUALIFIED ISSUER FRAMEWORK (ISSUED: 19 SEPTEMBER 2018) (REVISED: 19 JULY 2019)

1. What is the Qualified Issuer Framework? The Qualified Issuer Framework allows eligible issuers who meet the qualifying criteria to issue corporate bonds or sukuk to (bonds) retail investors without a prospectus. Qualified issuers however are required to provide investors with a Product Highlights Sheet prepared in accordance with the Guidelines on Sales Practices of Unlisted Capital Market Products.
2. What are the qualifying criteria to be a Qualified Issuer? To be a Qualified Issuer, an eligible issuer who is allowed to issue bonds under the Guidelines on Issuance of Corporate Bonds and Sukuk to Retail Investors (Retail Bonds Guidelines) must have issued or guaranteed bonds with an aggregate amount of at least RM500 million in the past five years. The bonds to be issued must have a minimum credit rating of AA- (or its equivalent).
3. What are the fees applicable to Qualified Issuers under the Qualified Issuer Framework? The fees applicable to Qualified Issuers for issuance of bonds under this framework are the same as those applicable to other eligible issuers under the Retail Bonds Guidelines. Such fees are prescribed in the Capital Markets and Services (Fees) Regulations 2012.