Regulatory Alerts2020-07-23
Summary of Key Amendments to the Guidelines on Trust Deeds
The Securities Commission issued revised Guidelines on Trust Deeds on 23 July 2020 to align definitions and requirements with the Capital Markets and Services Act and enhance clarity for corporate bond and sukuk issuers. The amendments introduce stricter default provisions by prohibiting materiality thresholds for payment defaults while expanding exemptions for regulatory capital entities and increasing the Trustees’ Reimbursement Account minimum to RM100,000. Additionally, the rules clarify issuer covenants, reporting duties, and trustee powers to ensure consistent investor protection and regulatory compliance across the capital markets.
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