Property And Shares Investment Companies in Malaysia

Property and shares investment companies in Malaysia are required to be licensed by the Securities Commission Malaysia (SC). These companies are also commonly known as unit trust companies.

Under the Securities Commission Act 1993, a property and shares investment company is defined as a company which:

(a) is engaged in or proposes to engage in the business of managing one or more unit trusts; or

(b) is a trustee of a unit trust.

A unit trust is defined as a trust fund established under a trust deed for the purpose of investing in securities, and includes a real estate investment trust.

The SC's Guidelines on Property and Shares Investment Companies (" Guidelines") provide guidance on the licensing requirements and ongoing obligations of these companies.

In general, a property and shares investment company must:

- have a minimum paid-up capital of RM5 million;

- have a minimum of two directors who are fit and proper persons;

- appoint a qualified company secretary;

- maintain a minimum level of liquid assets; and

- comply with the requirements on risk management, internal controls and corporate governance.

The Guidelines also set out requirements for the marketing and sale of unit trusts, as well as disclosure requirements