MAS inks deal with Malaysia, Thailand for streamlined cross-border prospectus review framework

The deal will enhance market efficiency.

Three ASEAN member countries have taken another step in integrating the region’s capital markets.

The Monetary Authority of Singapore (MAS) and the Singapore Exchange (SGX) today jointly signed a Memorandum of Understanding (MOU) with the Securities Commission Malaysia and the Securities and Exchange Commission, Thailand to establish a Streamlined Review Framework for the ASEAN Common Prospectus. 

The framework will facilitate cross-border offerings of Equity Securities and Plain Debt Securities in the region. 

Malaysia, Singapore and Thailand are the first three jurisdictions to sign the MOU. In a joint release, the three parties stated that securities regulators in other ASEAN jurisdictions will participate in the Framework when they are ready. 

Under the Framework, the review process for a multi-jurisdiction offering of Equity Securities or Plain Debt Securities will be streamlined, as long as the Prospectus is prepared in accordance with the ASEAN Disclosure Standards. 

The Framework requires both Home and Host Authorities to complete the review process at the same time, within three to four months from the date of submission.  

This will enhance market efficiency as the time taken for the issuer to obtain approval to offer its securities in multiple jurisdictions would be shortened, providing more certainty to the issuer in terms of the time-to-market.