Malaysia – Amendment To Schedules 5, 6 And 7 To The Capital Markets And Services Act 2007.

19 July 2021

 

Schedules 5, 6 and 7 to the Capital Markets and Services Act 2007 (“CMSA”) have been amended, with effect from 1 July 2021, pursuant to the Capital Markets and Services (Amendment of Schedules 5, 6 and 7) Order 2021 (the Amendment Order).
 

Amongst changes made pursuant to the Amendment Order are:
 

• In respect of Schedule 5 — the inclusion of initial exchange offering of digital currency and digital token through a recognised market operator as a type of corporate proposal which do not require approval of the Securities Commission Malaysia.
 

• The digital currency and digital token must satisfy the requirements in the Capital Markets and Services (Prescription of Securities) (Digital Currency and Digital Token) Order 2019 and to be prescribed as securities under the CMSA.
 

• In respect of Schedules 6 and 7, the categories of sophisticated investors have been expanded to include:
 

(a) individuals with investment portfolio exceeding RM1 million (or its equivalent in foreign currencies) in capital market products, either on their own or through joint accounts with their spouse as a category of high-net worth individuals;
 

(b) corporations that are licensed, registered or approved to carry on a regulated activity or capital markets services by an authority in Labuan or outside Malaysia which exercises functions corresponding to the functions of the Securities Commission Malaysia is added as a category accredited investors;
 

(c) corporations that carry on the fund management activities solely for the benefit of its related corporations (as defined in the CMSA) with assets of more than RM10 million (or its equivalent in 4 foreign currencies) is added as a category of highnet worth entity.
 

• Parts III of Schedules 6 and 7, respectively, have been amended to include an offer, invitation or initial public offering of shares of corporation on the alternative market of Bursa Malaysia Securities Berhad, provided the offer, invitation or initial listing is accompanied with a prospectus which is registered by Bursa Malaysia Securities Berhad.