REQUIREMENTS FOR LISTING OF FUNDS
To be eligible for listing, a fund must comply with the following conditions:
Pre-requisite for Listing of Funds
- Must be an approved fund or be domiciled or incorporated in an approved jurisdiction or otherwise be acceptable to the Exchange.
- Must have appointed an independent auditor.
- Must be able to provide the calculation of Net Asset Value (NAV) periodically.
- The fund listed on LFX must be placed in custody with Citibank Worldwide Securities Services and Deutsche Bank (Malaysia) Berhad, LFX's appointed settlement and depository service provider.
- Directors must, collectively, have adequate experience and expertise in management of mutual funds or of the type in which the fund proposes to invest.
- Directors must, individually, be responsible for the contents of listing documents and must state such responsibility in the listing documents.
- Investment Manager must demonstrate appropriate experience and expertise in management of mutual funds i.e. track record etc.
- All service providers must disclose any conflicts of interest in the operation of the fund.
- The securities of a fund must be freely transferable and able to be traded on equal basis i.e. rank pari passu.
- All audited annual accounts or interim financial statement or statement of NAV must be prepared in accordance with the United States ("US") or United Kingdom ("UK") Generally Accepted Accounting Principles ("GAAP") or International Accounting Standards ("IAS").
Contents of Listing Documents
- General Description of Funds
- Relevant details including name, address and domicile or legal constitution of funds.
- Responsibility statement by the directors of funds.
- A statement that application has been made to list i.e. declaration of undertaking.
- Description of the nature, amount and price of issue and details of valuation.
- Description of any arrangements made for conversion between classes and a clear statement as to any cross-class liabilities.
- Details of auditors and other service providers.
- Disclosure of any pending legal proceedings.
- Investment Policy and Strategies of Funds
- A description of investment objectives and policies.
- A description of principal strategies.
- Disclosure of all material risks.
- Details of any investments made or proposed other than by purchase through an exchange or other open market.
- Management of Funds
- Details of investment manager and advisers.
- Details of service agreements and aggregate remuneration of directors.
- Disclosure and a summary of provisions of all material contracts.
- Assets & Financial Position of Funds
- An audited annual accounts for funds which have been in existence for twelve months or more at the listing date.
- An interim financial statement made up to a date no earlier than three months prior to the listing document date if more than nine months have elapsed since the date of last audited accounts.
- An audited statement of NAV for funds which have been in existence for less than twelve months as of a date not more than three months prior to the listing document date.
- The investment portfolio as of a date not more than three months prior to the listing document date.
- Where a fund has not commenced operations, a statement to that effect.
- Other financial highlights, if any.
- Other Related Information
- Procedures of purchasing and redeeming of funds.
- Costs of investments.
- Dividends & distributions.
- Disclosure of Material Changes for Dissemination
- Immediate notification to the Exchange is required for any price sensitive information, any material changes of new developments or operational changes and any material changes in performance or financial position of a listed fund.
- Annual and Interim Accounts
- Audited annual reports and accounts are to be sent to the Exchange and shareholders within six months of the period to which they relate. These annual reports and accounts and any interim financial accounts published by the fund must be made available on request.
- Calculations of NAV
- Immediate notification to the Exchange is required for all calculations of NAV.
- Marketing Materials A complete file of any marketing materials must be maintained by the listed fund and must be made available on request to the Exchange's authorised representatives.