Regulatory Alerts2024-10-01
Summary of Amendments to Revised Guidelines on Unit Trust Funds
The Securities Commission Malaysia issued revised Guidelines on Unit Trust Funds on 1 October 2024 to consolidate requirements previously found in repealed Online Transactions and Marketing Guidelines. The amendments broaden disclosure obligations regarding unit split exercises and insert new guidance to ensure unit holders receive sufficient information on the impact of such splits on their investments. Additionally, the revision clarifies the appropriateness of fund names and incorporates existing reporting standards into the regulatory framework.
SUMMARY OF AMENDMENTS REVISED GUIDELINES ON UNIT TRUST FUNDS (Date of Issuance: 1 October 2024) Page 1 of 3 The following table provides a summary of key amendments to the revised Guidelines on Unit Trust Funds (Guidelines) issued on 1 October 2024: A. Overview The Guidelines were revised1. As a consequence of the repeal of the Guidelines on Online Transactions and Activities in Relation to Unit Trusts (Online Transactions Guidelines) and Guidelines on Marketing and Distribution of Unit Trust Funds (Marketing Guidelines). The Online Transactions Guidelines and Marketing Guidelines were repealed consequent to the issuance of the revised Guidelines on Conduct for Capital Market Intermediaries on 1 October 2024 (Conduct Guidelines); 2. To broaden the requirement for disclosures relating to a unit split exercise; 3. To insert new guidance to enable unit holders to have sufficient information on a unit split exercise and impact on unit holder’s investments; and 4. To insert new guidance to clarify the appropriateness of a fund’s name. B. Amendment to specific paragraphs No. Prior to 1 October 2024 Revised Version Dated 1 October 2024 Comments Part 3: The Management Company
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- Paragraph 3.26 New paragraph inserted to incorporate relevant requirement from paragraph 7.06 of the repealed Online Transactions Guidelines.
SUMMARY OF AMENDMENTS REVISED GUIDELINES ON UNIT TRUST FUNDS (Date of Issuance: 1 October 2024) Page 2 of 3 B. Amendment to specific paragraphs No. Prior to 1 October 2024 Revised Version Dated 1 October 2024 Comments 2. - Paragraph 3.27 New paragraph inserted to incorporate relevant requirement from paragraph 7.06A of the repealed Online Transactions Guidelines. 3. Paragraph 3.28 New paragraph inserted to incorporate relevant requirement from Chapter 6 of the repealed Marketing Guidelines. 4. Paragraph 3.29 New paragraph inserted to incorporate existing requirement under the UTF Statistical and Investment Returns Reporting Manual. Chapter 9: Operational Matters 5. Paragraph 9.18 Paragraph 9.18 Amended to broaden the requirement for disclosures relating to a unit split exercise. Chapter 11: Applications, Notifications and Reporting to the Securities Commission Malaysia 6. Paragraph 11.19 Paragraph 11.19 Amended pursuant to insertion of new paragraph 3.28 above. Guidance to Chapter 5: Constitution of the Fund 7. - Guidance to Paragraph 5.05 New guidance inserted to clarify the appropriateness of a fund’s name.
SUMMARY OF AMENDMENTS REVISED GUIDELINES ON UNIT TRUST FUNDS (Date of Issuance: 1 October 2024) Page 3 of 3 B. Amendment to specific paragraphs No. Prior to 1 October 2024 Revised Version Dated 1 October 2024 Comments Guidance to Chapter 9: Operational Matters 8. Guidance to Paragraphs 9.12 and 9.14 Guidance to Paragraphs 9.12 and 9.14 Amended to reflect insertion of new paragraph 3.26 above. 9. - Guidance to Paragraph 9.18 New guidance inserted to clarify that statement to unit holders should provide sufficient information on the unit split exercise and its impact on unit holders’ investments.