Guidelines on Sustainable and Responsible Investment Funds
Guidelines on Sustainable and Responsible Investment Funds
As of February 17, 2023, the Securities Commission (SC) has revised its Guidelines on Sustainable and Responsible Investment Funds, aligning them with the newly introduced ASEAN Sustainable and Responsible Fund Standards. The guidelines cover various aspects, including the scope of an SRI fund, policies and strategies, disclosure and reporting requirements, and third-party verification. The revised guidelines are divided into three parts:
**Part A: Sustainable and Responsible Investment (SRI) Fund**
This section focuses on the requirements and guidelines for funds seeking qualification as sustainable and responsible investment (SRI) funds. Key aspects covered include the scope of an SRI fund, naming conventions, policies and strategies, disclosure and reporting requirements, and the utilization of third-party verification. The guidelines outline the issuer's obligations and provide guidance on compliance.
**Part B: ASEAN Sustainable and Responsible Fund**
Part B outlines the requirements for new or existing SRI funds aiming to qualify as an ASEAN Sustainable and Responsible Fund. Issuers are required to ensure that the SRI fund complies with the ASEAN Sustainable and Responsible Fund Standards issued by the ASEAN Capital Markets Forum (ACMF). The guidelines provide guidance on defining a sustainable investment objective for an ASEAN Sustainable and Responsible Fund.
**Part C: Certification in Respect of Tax Exemption for Managing an SRI Fund**
This section focuses on the certification process for tax exemption related to managing an SRI fund. It includes an application form and declaration that issuers need to submit for certification. The guidelines clarify that tax exemption on the management fee for SRI funds and other tax incentives are mutually exclusive. This means that only one incentive can be applied for in a given financial year for the same SRI fund.
These revised guidelines aim to enhance the framework for sustainable and responsible investment funds in alignment with regional standards, fostering transparency and accountability in the management of such funds.
As of February 17, 2023, the Securities Commission (SC) has revised its Guidelines on Sustainable and Responsible Investment Funds, aligning them with the newly introduced ASEAN Sustainable and Responsible Fund Standards. The guidelines cover various aspects, including the scope of an SRI fund, policies and strategies, disclosure and reporting requirements, and third-party verification. The revised guidelines are divided into three parts:
**Part A: Sustainable and Responsible Investment (SRI) Fund**
This section focuses on the requirements and guidelines for funds seeking qualification as sustainable and responsible investment (SRI) funds. Key aspects covered include the scope of an SRI fund, naming conventions, policies and strategies, disclosure and reporting requirements, and the utilization of third-party verification. The guidelines outline the issuer's obligations and provide guidance on compliance.
**Part B: ASEAN Sustainable and Responsible Fund**
Part B outlines the requirements for new or existing SRI funds aiming to qualify as an ASEAN Sustainable and Responsible Fund. Issuers are required to ensure that the SRI fund complies with the ASEAN Sustainable and Responsible Fund Standards issued by the ASEAN Capital Markets Forum (ACMF). The guidelines provide guidance on defining a sustainable investment objective for an ASEAN Sustainable and Responsible Fund.
**Part C: Certification in Respect of Tax Exemption for Managing an SRI Fund**
This section focuses on the certification process for tax exemption related to managing an SRI fund. It includes an application form and declaration that issuers need to submit for certification. The guidelines clarify that tax exemption on the management fee for SRI funds and other tax incentives are mutually exclusive. This means that only one incentive can be applied for in a given financial year for the same SRI fund.
These revised guidelines aim to enhance the framework for sustainable and responsible investment funds in alignment with regional standards, fostering transparency and accountability in the management of such funds.
24 Jan 2024
