MALAYSIA Law and Practice Contributed by: Dilys Tan, Adnan Sundra & Low
4. Laws and Regulations Specifically Relating to Securitisation 4.1 Specific Disclosure Laws or Regulations Please refer to 3.10 Offering Memoranda . 4.2 General Disclosure Laws or Regulations Please refer to 3.10 Offering Memoranda . 4.3 Credit Risk Retention There are no laws or regulations on credit-risk retention for securitisation transactions in Malay - sia. 4.4 Periodic Reporting There are no specific laws or regulations in Malaysia that require periodic reporting for secu - ritisation transactions in Malaysia, save for in pri - mary CLO transactions, where under the LOLA Guidelines the principal adviser and originating bank must ensure that there are adequate pro - visions in the loan agreements or facility agree - ments to require borrowers to provide the follow - ing reporting criteria, and to ensure that these are enforceable (together with the imposition of various forms of penalties): • submission of financial statements, including semi-annual accounts and audited annual accounts, to the trustee, portfolio manager and rating agency (RA) on a timely basis; and • immediate notice to the trustee and RA of any material changes to the nature of the busi - ness and shareholding structure. 4.5 Activities of Rating Agencies There are no laws or regulations in Malaysia that regulate the securitisation activities of RAs. In Malaysia, RAs are regulated by the SC pursuant
• Date of issuance of the product highlights sheet on the first page thereof. • Information on the preparer of the product highlights sheet. • A brief description of the ABS. • Key features of the ABS, particularly: (a) any significant unusual feature; (b) the applicable Shariah principle; (c) issue size; (d) rating; (e) mode of issue; (f) events of default/dissolution; and (g) an illustration of the best-case scenario and worst-case scenario (where permitted and applicable). • Key risks of investing in the ABS, particularly risks that commonly occur or that may cause significant losses. • All relevant fees, charges and commissions – including any management fees, distribution fees, redemption fees, switching fees and any other substantial fees payable by the inves - tors – and an indication as to when such fees are payable, whether one-off or on a recurring basis. • Valuations and relevant matters relating to exit from the investment, such as: (a) the frequency of publication of valuations; (b) duration of the cancellation period; (c) how the investors may exit during the cancellation period; and (d) any costs, charges or penalties for early exit or early redemption, and the basis for such costs, charges or penalties. • Contact information to facilitate enquiry or complaints. Other requirements of a product highlights sheet are set out in Part 3 of the PHS Guidelines.
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