Summary of Amendments to the Revised Prospectus Guidelines for Collective Investment Schemes

SUMMARY OF AMENDMENTS
REVISED PROSPECTUS GUIDELINES FOR COLLECTIVE INVESTMENT SCHEMES (Date of Issuance: 1 September 2022) The following table provides a summary of key amendments to the revised Prospectus Guidelines for Collective Investment Schemes (Guidelines) issued on 1 September 2022:
A. Overview

1. Incorporating applicable amendments with appropriate modifications pursuant to the Securities Commission Malaysia’s (SC) Public
   Consultation Paper No. 1/2020 (CP) that was issued on 11 November 2020.
2. Housekeeping amendments throughout the Guidelines to provide greater clarity and consistency. These amendments include stylistic or
   formatting changes and necessary changes of an editorial nature such as renumbering and rephrasing of certain requirements and contents, standardisation of terminology, updating of information, grammatical corrections and alphabetical order.

Part I - Chapter 2: Definitions and Interpretations

1. Paragraph 2.01 Paragraph 2.01 Definition for “country-specific government
   bond or fixed income fund”, “repurchase transactions” and “securities lending” is deleted and replaced with a general definition given these terms are used in connection with prospectus of funds other than unit trust funds. The term “net asset value (NAV)” is amended to “NAV” and it is to mean “net asset value”. Deleted “non-complex fund” as the term is not being used in the Guidelines.
   Part II – Chapter 2: Inside Cover/First Page
2. Paragraph 2.03 Paragraph 2.03 (b) Repositioned the requirement under the
   previous paragraph 1.05 of Part II, to prescribe for a warning statement on distribution out of capital.
   Part III – Chapter 7: Key Parties
3. Paragraph 7.10 (a) Paragraph 7.10 (a) Amended to replace the term “designated
   person” with “Shariah officer” following the amendment made to Chapter 4 of Part II.
4. Paragraph 7.11 – Deleted to remove disclosure requirement on
   panel of advisers.

Part III – Chapter 13: Specific Requirements for Exchange-traded Funds

1. – Paragraph 13.05 New paragraph inserted to allow information in
   the corporate directory to be incorporated by referencing to the management company’s website.

2. Paragraph 13.09 Paragraphs 13.10 (a) and (b) Amended to provide for the disclosure
   pertaining to liquidity risk.

3. Paragraph 13.10 (b)(i) Paragraphs 13.11 (b)(i) Amended to prescribe the disclosure for
   country-specific government bond or fixed income fund.

4. Paragraph 13.10 (c) Paragraphs 13.11 (c) Amended to provide for the disclosure
   pertaining to liquidity risk management.

5. – Paragraphs 13.11(h) New paragraph inserted to prescribe the
   disclosure pertaining to policy on cross trades.

6. Paragraph 13.13 (a) Paragraph 13.14 (a) Amended to provide greater clarity and
   consistency with the amendment made to
   Chapter 4 of Part II.

7. Paragraph 13.17 Paragraph 13.18 Amended to include reference to “embedded
   derivatives”.

8. Paragraph 13.17 (c) Paragraph 13.17 (d) Repositioned the requirement under a
   paragraph which prescribes requirement relating to leveraged and inverse ETF.

9. – Paragraph 13.18 (d) New paragraph inserted to prescribe a
   statement relating to derivative settlement when the derivative is on commodity.

10. – Paragraph 13.20 New paragraph inserted to prescribe the
    disclosure in relation to securities lending and repurchase transactions.

11. – Paragraph 13.21 (a) New paragraph inserted to prescribe the
    disclosure on percentage of collateralisation.

12. – Paragraph 13.25 New paragraph inserted to disapply disclosure
    requirement that is not applicable to ETF.

13. – Paragraph 13.28 New paragraph inserted to prescribe
    requirement relating to the cost involved in acquisition and disposal of assets by the ETF.
    Part VI – Chapter 1: General

14. Paragraph 1.03 Paragraph 1.03 Amended to provide for the information and
    documents to be submitted to the SC to be specified on the SC’s website.
    Part VI – Chapter 2: Registration of an Unlisted Fund’s Prospectus

15. Paragraph 2.04 Paragraph 2.04 Amended pursuant to the disapplication of
    requirement for submission of physical documents to the SC.

16. Paragraph 2.06 (a) Paragraph 2.06 (a) Amended as the requisite information will be
    prescribed on the SC’s website.

17. Paragraph 2.06 (b) – Deleted pursuant to the disapplication of
    requirement for submission of physical documents to the SC.

18. Paragraphs 2.06 (j) and (k) – Deleted as the requisite information will be
    prescribed on the SC’s website.

19. Paragraph 2.07 – Deleted as the specification will be made on the
    SC’s website.
    Part VI – Chapter 3: Registration of a Listed Fund’s Prospectus

20. Paragraph 3.04 (a) Paragraph 3.04 (a) Amended as the requisite information will be
    prescribed on the SC’s website.

21. Paragraph 3.06 (b) – Deleted pursuant to the disapplication of
    requirement for submission of physical documents to the SC.

22. Paragraph 3.10 (a) Paragraph 3.10 (a) Amended as the requisite information will be
    prescribed on the SC’s website.

23. Paragraph 3.13 – Deleted as the specification will be made on the
    SC’s website.

24. Paragraph 3.19 (a) Paragraph 3.18 (a) Amended as the requisite information will be
    prescribed on the SC’s website.
    Part VI – Chapter 4: Lodgement of a Prospectus

25. Paragraph 4.01 (a) Paragraph 4.01 (a) Amended as the requisite information will be
    prescribed on the SC’s website.

26. Paragraph 4.01 (b) – Deleted pursuant to the disapplication of
    requirement for submission of physical documents to the SC.
    Guidance

27. • Guidance to paragraph 13.11 (c) – Part
      III
      New Guidance inserted to provide clarity on disclosure relating to liquidity risk management.

28. Guidance to paragraph 1.03 – Part IV Guidance to paragraph 1.03 – Part IV Amended pursuant to disapplication of
    requirement for submission of physical documents to the SC.

29. Guidance to paragraphs 3.02 and 3.20 – Part
    VI
    Guidance to paragraphs 3.03 and 3.21 –
    Part VI
    Amended to rectify typographical errors.