Circular No 104/2018
Dated 17 Apr 2018

To Members of the Malaysian Bar

Issuance of Amendments to Main Market Listing Requirements in Relation to Collective Investment Scheme and Business Trust

Bursa Malaysia Berhad (Regulatory Policy & Advisory) has informed us, in its email dated 3 Apr 2018, regarding the issuance of amendments to the Main Market Listing Requirements (“Main LR”) in relation to the collective investment scheme (“CIS”) and business trust (collectively referred to as the “CIS Amendments”), and the relevant “Questions and Answers” document, on 2 Apr 2018.

Kindly note that most of the CIS Amendments came into effect on 9 Apr 2018.  Enhancements relating to corporate governance and additional disclosures in the quarterly reports and annual reports will have a longer grace period for compliance.

The following documents are attached for your reference:

(1) Bursa Malaysia Berhad’s circular dated 2 Apr 2018;
(2) Appendix 1 entitled “Amendments in Relation to Collective Investment Scheme and Business Trust”, setting out the full text of the Main LR in relation to the CIS Amendments; and
(3) Appendix 2 entitled “Questions and Answers”, which serves as a set of Frequently-Asked-Questions (“FAQ”) in relation to the CIS Amendments.

For more details, please refer to the email from Bursa Malaysia Berhad, which is reproduced below, or visit Bursa Malaysia Berhad’s website at www.bursamalaysia.com.

Thank you.

Roger Chan Weng Keng
Secretary
Malaysian Bar

3 Apr 2018

Please be informed that the amendments to the Main Market Listing Requirements (“Main LR”) in relation to the collective investment scheme (“CIS”) and business trust (collectively the “CIS Amendments”) together with the relevant Questions & Answers, have been issued yesterday, 2 April 2018.

The CIS Amendments arise from a review of the existing CIS and business trust framework by the Securities Commission Malaysia (“SC”) and the Exchange, to achieve the following objectives:

(a) streamline the regulatory roles of SC and the Exchange where the Exchange will be the approving authority for new issue of securities for listed CIS and business trusts (other than debt securities or pursuant to a significant change in the business direction or policy of a business trust);

(b) improve market efficiency and efficacy in the secondary fund-raising exercises by  listed CIS and business trusts, among others, by improving time-to-market for new issuance of securities;

(c) strengthen key aspects of investor protection in relation to transactions and governance practices, as well as facilitate growth through expanded scope of permitted activities, of real estate investment trusts;

(d) ease regulatory burden through liberalisations, where appropriate to ensure a more balanced regulatory framework; and

(e) facilitate access to quality and value add information by investors which are specific and relevant to each CIS or business trust in their respective periodic reports.

Following the review, the Capital Markets and Services Act 2007 has been amended, in which the function to approve new issue of securities by listed CIS and business trust (other than debt securities or pursuant to a significant change in the business direction or policy of a business trust), is now transferred to the Exchange as the approving authority.

Most of the CIS Amendments will take effect from 9 April 2018 onwards. Enhancements relating to corporate governance and additional disclosures in the quarterly reports and annual reports will have a longer grace period for compliance.

In view of the above, we are pleased to attach the following documents for your ease of reference:

• Our circular dated 2 April 2018.
• Appendix 1 setting out the full text of the Main LR in relation to the CIS Amendments.
•  Appendix 2 setting out the Main LR Questions and Answers in relation to the CIS Amendments.

These documents are also available on our website.

Thank you.

Norlaila Mohamed
(For and behalf of Regulatory Policy & Advisory, Bursa Malaysia Berhad)