[Unit Trust] How to classified as Sophisticated Investors?

For unit trust investment, an investor must be a sophisticated investor before he/she is qualified to invest in a fund categorized as a wholesale fund under the guideline issued by the Securities Commission of Malaysia (SC).

With over 300 wholesale funds available in Malaysia worth over Rm 90 billion in total, we should have some understanding of it and you must know whether you qualify for it as well.

Check out the list below:

1. An individual whose total net personal assets, or total net joint assets with his or her spouse, exceed RM3 million or its equivalent in foreign currencies, excluding the value of the individual’s primary residence;
   
   
2. An individual who has a gross annual income exceeding RM300,000 or its equivalent in foreign currencies per annum in the preceding twelve months;
   
   
3. An individual who, jointly with his or her spouse, has a gross annual income exceeding RM400,000 or its equivalent in foreign currencies per annum in the preceding twelve months;
   
   
4. A corporation with total net assets exceeding RM10 million or its equivalent in foreign currencies based on the last audited accounts;
   
   
5. A partnership with total net assets exceeding RM10 million or its equivalent in foreign currencies;
   
   
6. A unit trust scheme or prescribed investment scheme;
   
   
7. A private retirement scheme;
   
   
8. A closed-end fund approved by the Securities Commission Malaysia;
   
   
9. A company that is registered as a trust company under the Trust Companies Act 1949 which has assets under management exceeding RM10 million or its equivalent in foreign currencies;
   
   
10. A corporation that is a public company under the Companies Act 1965 which is approved by the Securities Commission Malaysia to be a trustee under the Capital Markets and Services Act 2007 and has assets under management exceeding RM10 million or its equivalent in foreign currencies;
    
    
11. A statutory body established by an Act of Parliament or an enactment of any State;
    
    
12. A pension fund approved by the Director General of Inland Revenue under section 150 of the Income Tax Act 1967;
    
    
13. A holder of a capital markets services license or an executive director or a chief executive officer of a holder of a capital markets services license;
    
    
14. A licensed institution as defined in the Financial Services Act 2013;
    
    
15. An Islamic bank as defined in the Islamic Financial Services Act 2013;
    
    
16. An insurance company registered under the Financial Services Act 2013;
    
    
17. A takaful operator registered under the Islamic Financial Services Act 2013;
    
    
18. A bank licensee or insurance licensee as defined under the Labuan Financial Services and Securities Act 2010;
    
    
19. An Islamic bank licensee or takaful licensee as defined under the Labuan Islamic Financial Services and Securities Act 2010; and
    
    
20. Any other investor as may be defined by the Securities Commission Malaysia from time to time.

Click here to download the list of wholesale funds launched as at 31st May 2016.

<<<<<<<< UPDATE >>>>>>>>

The Securities Commission Malaysia (SC) today announced several amendments to the Capital Markets and Services Act 2007 (CMSA), which come into force on 1 July 2021.

The amendments, effected through changes made to Schedules 6 and 7 of the CMSA, have widened the categories of sophisticated investors, to include among others, individuals with investments of RM1 million in capital market products, either on their own or through joint accounts with their spouse; CEOs and directors of licensed or registered persons under the CMSA; and corporations that manage funds of their related companies with assets of more than RM10 million.

Click here to download the FULL list of Updated Categories of Sophisticated Investors