{"id":29617,"date":"2017-05-19T10:37:05","date_gmt":"2017-05-19T02:37:05","guid":{"rendered":"https:\/\/www.imoney.my\/articles\/?p=29617"},"modified":"2017-05-19T10:37:05","modified_gmt":"2017-05-19T02:37:05","slug":"securities-commission-ease-capital-requirement-etf-issuers","status":"publish","type":"post","link":"https:\/\/www.imoney.my\/articles\/securities-commission-ease-capital-requirement-etf-issuers","title":{"rendered":"Securities Commission To Ease Capital Requirement For ETF Issuers"},"content":{"rendered":"

Securities Commission Malaysia (SC) announced that the minimum requirement for Exchange-Traded Fund (ETF)<\/a> issuers will be lowered from RM10 million to RM2 million, in a move to attract more issuers and encourage the issuance of more ETFs. <\/span><\/p>\n

Other key implementations that will be put into place before the end of the year are the introduction of futures-based and conventional commodity-based products. <\/span><\/p>\n

These were among key recommendations from the task force on ETFs chaired by the SC. <\/span><\/p>\n

Investors can expect to see more issuers and issuance of ETFs with the easing of the capital requirement. <\/span><\/p>\n

However, other than boosting the quantity, SC also aims to spur product innovation by introducing physically-backed commodity, futures-based Leverage & Inverse, smart Beta, as well as synthetic replication (collateralised) ETFs will be facilitated. <\/span><\/p>\n

\u201cThis will provide affordable entry points for retailers in traditionally difficult-to-access investments. The task force also recommends allowing greater flexibility in terms of investment strategies, including the introduction of Leverage and Inverse ETFs,\u201d SC in a statement.<\/span><\/p>\n

The ETF task force also made recommendations to enhance the ETF eco-system, intensify investor engagements, and improve cost structures for issuers and issuances.<\/span><\/p>\n

These recommendations, which are aimed at attracting greater investor participation and incentivising issuances by the local ETF managers, would enhance the ecosystem and drive further growth of the ETF industry in Malaysia, said ETF task force chairman Zainal Izlan Zainal Abidin. <\/span><\/p>\n

\u201cSC will work with the relevant stakeholders to implement these measures and develop a more vibrant ETF market that provides greater opportunities and options for investors and issuers, as well as promote more inclusive participation in the Malaysian capital market,\u201d said Zainal Izlan, who is also SC managing director of Development & Islamic Markets.<\/span><\/p>\n

Other recommendations made by the task force include:<\/span><\/p>\n