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ASEAN Collective Investment Scheme Framework launched

The framework is the result of a regional capital market integration plan endorsed by the ASEAN Finance Ministers five years ago.

SINGAPORE: Singapore-based fund managers can now offer their retail funds directly to investors in Malaysia and Thailand under a streamlined process. This follows the launch of the ASEAN Collective Investment Scheme (CIS) Framework by the Monetary Authority of Singapore (MAS), the Securities Commission of Malaysia, and the Securities and Exchange Commission of Thailand on Monday (August 25).

The ASEAN CIS framework facilitates the offering of a wide range of innovative cross-border funds to retail investors in the three countries. Market watchers say such moves can also help mutual fund houses to enhance their business growth.

Mr Lee Boon Ngiap, Assistant Managing Director (Capital Markets) at MAS, said: "Retail investors in ASEAN will benefit from an increase in the choice of funds for investment with the launch of the ASEAN CIS Framework. Fund managers in an ASEAN country will have a direct and efficient route to offer their funds to retail investors in other ASEAN countries."

Fund managers using this framework will have to abide by a set of common standards designed to ensure that participating fund managers have the necessary experience and track record.

MAS, SC Malaysia and SEC Thailand have also jointly published a handbook to provide guidance to fund managers on the operational aspects of the ASEAN CIS Framework.

The ASEAN CIS Framework is one of the initiatives undertaken by the ASEAN Capital Market Forum as part of the regional capital market integration plan endorsed by the ASEAN Finance Ministers in 2009.