Asean to start streamlined review framework

KUALA LUMPUR: The Securities Commission Malaysia (SC), the Monetary Authority of Singapore (MAS), the Securities and Exchange Commission (SEC), Thailand and the Singapore Exchange (SGX) have signed a memorandum of understanding (MoU) to establish a Streamlined Review Framework for the Asean Common Prospectus.
The Streamlined Review Framework, an initiative under the Asean Capital Markets Forum (ACMF) Implementation Plan endorsed by Asean finance ministers, will enhance Asean's attractiveness as a fund-raising centre. Under the framework, issuers planning to offer or list equity or plain debt securities can now expect a shorter time-to-market and faster access to capital across signatory countries through a streamlined review process.
The MoU signatories aim to implement the framework by the third quarter of 2015 with a handbook to be jointly issued. The handbook will provide guidance on the various administrative and procedural matters including the criteria for issues, the application procedures and the review timeline.
SC chairman Datuk Ranjit Ajit Singh, who also chairs the ACMF, said the review of offer or listing applications and the registration of prospectuses will be synchronised among the ACMF signatories, and approvals for offers or listings and registration of prospectuses will be granted simultaneously. It is also to ensure a more seamless process for an issuer seeking listing in more than one ACMF signatory jurisdiction, and will reduce the time required currently for issuers preparing for a multi-jurisdictional offering of equity or plain debt securities in Asean.
"We believe the framework is already creating traction and we believe Indonesia and the Philippines will sign on by the end of this year," Ranjit told reporters after the signing ceremony here yesterday.
The 22nd ACMF meeting in Kuala Lumpur also announced the authorisation for five funds as Qualifying Collective Investment Schemes (CIS) under the Asean framework for cross-border offering of CIS, which was implemented in 2014. The five qualified funds were approved by the SC and MAS while the SEC Thailand is in the process of reviewing one fund application. These qualified funds are allowed to be offered to retail investors in the signatory countries including Malaysia, Singapore and Thailand.
The ACMF meeting has also approved the proposal to develop a five year Action Plan from 2016 to 2020, which will focus on ensuring seamless access to capital and investments within a connected regional market.
"We expect to launch the ACMF Action Plan 2016-2020 by the end of the year," said Ranjit.
The ACMF was set up in 2004 to promote freer flow of capital and greater connectivity of Asean capital markets.