Securities Commission Malaysia has unveiled the Foreign Exempt Scheme (FES) framework to enhance onshore access to foreign investment funds for high net worth entities and institutional investors, promoting portfolio diversification. This strategic move reflects the SC’s commitment to innovation and inclusivity within the capital market, encouraging a diverse and dynamic investment environment.
29 August 2023 – The Securities Commission Malaysia (SC) has unveiled the Foreign Exempt Scheme (FES) framework as part of its efforts to liberalize the fund management industry. This framework will enhance onshore access to foreign investment funds for high net worth entities and institutional investors, fostering diversification and expanding investment options. In addition, the SC has introduced flexibility for wholesale fund managers to invest in alternative products, signaling its dedication to promoting a diverse and inclusive investment environment.
The FES framework represents a strategic move by the SC to widen the scope of investment choices available to high net worth entities and institutional investors. This framework facilitates access to foreign investment funds that are offered by entities related to SC-licensed fund management companies. The introduction of FES aligns with the SC’s broader commitment to fostering innovation and inclusivity within the capital market, ensuring a robust regulatory framework that encourages product diversity while catering to various risk appetites and investor needs.
Datuk Seri Dr. Awang Adek Hussin, Chairman of the SC, emphasized that the FES framework offers investors greater avenues to diversify their portfolios, allowing them to explore a broader range of investment opportunities. This initiative aims to strengthen Malaysia’s capital market while providing investors with enhanced options for portfolio expansion. – reference: The Star
