Securities Commission Malaysia issues Revises ETF Guidelines
26 November 2018
The Securities Commission Malaysia (SC) has issued a set of revised Guidelines for Exchange Traded Funds (ETFs).
New products such as futures-based ETFs (i.e. Leveraged and Inverse (L&I) ETFs), synthetic ETFs, physical commodity ETFs and smart beta ETFs, will be introduced.
Due to the complexity of the L&I ETFs, prospective retail investors are required to meet certain pre-qualification criteria before they can invest in these products. First time retail investors must undergo an e-learning module developed by Bursa Malaysia as well as a performance simulator provided by management companies of L&I ETFs before they can invest in L&I ETFs.
The revised ETF Guidelines will come into operation on 2 January 2019.
The SC’s media release and the link to the revised Guidelines and FAQs can be accessed through the link below –