KUALA LUMPUR: The Securities and Exchange Commission of The Philippines (SEC Philippines) officially became the newest signatory to the Association of Southeast Asian Nations (Asean) Collective Investment Schemes (CIS) Framework.
The Asean CIS Framework is an initiative under the regional capital markets integration plan endorsed by the Asean finance ministers in 2009 to facilitate cross-border product access and fund distribution for investors and issuers respectively.
Asean capital markets forum (ACMF) in a statement today said the Securities Commission Malaysia (SC), the Monetary Authority of Singapore (MAS), and the Securities and Exchange Commission of Thailand have signed a supplemental memorandum of understanding (MoU) to admit the SEC Philippine to this CIS framework.
ACMF said the entry of The Philippines into the framework is the latest step towards enhancing capital market connectivity in the region.
"The framework enables fund managers operating in a member jurisdiction to offer a CIS constituted and authorised in that jurisdiction to retail investors in other member jurisdictions under a streamlined authorisation process.
"With SEC Philippines' participation in the Asean CIS Framework, qualified investment companies in The Philippines and their fund managers will now be able to offer eligible funds to retail investors in the other three member jurisdictions, and vice versa," it said.
SC chairman Syed Zaid Albar said under the Asean CIS Framework, retail investors are able to tap into a wider choice of funds from beyond their borders, and fund managers can offer their products cross-border under an efficient approval system.
"The addition of The Philippines to the three existing jurisdictions under the framework broadens the range of regional funds for portfolio diversification.
"We hope for more participation from our ASEAN counterparts in future," said Syed Zaid.
SEC Philippines chairperson Emilio Aquino said the expansion of the Asean CIS initiative to The Philippines further strengthens connectivity in the Asean region.
"As the fourth signatory to the framework, we will also endeavour to work together with other signatories in encouraging other Asean countries in joining the framework and in promoting cross-border offerings of Asean Funds," said Aquino.