Dubai funds first direct offering in Malaysia

Saturday June 30, 2007

Dubai funds first direct offering in Malaysia

KUALA LUMPUR: Islamic funds distributed by Dubai's financial centre will be the first foreign funds to be offered directly to Malaysians under new rules that take effect on July 1.

Investors currently had to go through a feeder fund in Malaysia to gain exposure to foreign funds, the Securities Commission said. But the new guidelines, designed to ease marketing and distribution of foreign funds, will change that.

Malaysian and Dubai authorities signed a pact on March 27 to allow approved Islamic funds to be sold in their respective jurisdictions.

Foreign funds included, among others, retail unit trust funds or mutual funds, real estate investment trusts or private funds, whether unlisted or listed on an exchange, the regulator said.

The Dubai International Financial Centre, set up by the government of the Gulf Arab emirate to build a financial services hub there, was the first foreign jurisdiction recognised by Malaysia, the SC said in a statement.

“The list of recognised jurisdictions is set to expand with the signing of future mutual recognition agreements,” it added, but gave no details.

The pacts would also allow Malaysian manufactured funds to be offered and distributed in recognised jurisdictions, it said. – Reuters