[ A D V E R T O R I A L ] investment restriction and language . The ASEAN CIS passport is intended to facilitate inbound and outbound intra-regional fund offerings and distribution . As with all cross-border transactions , we do anticipate opportunities to becoming the domestic local service provider to inbound funds / investors coming to our shores . However , until the CIS framework is further harmonised , we expect the markets in ASEAN to remain domestic-focused rather than regional .
How would you characterise the level of competition in the Malaysian securities services market ? In Malaysia , competition is seen from two aspects . An important factor is whether you have trustee services in your setup or not . If you have trustee services , then you will be able to compete for the CIS business i . e . unitised funds which covers unit trust funds , wholesale funds and private retirement scheme funds . For custodians who do not have a trustee setup , the custodian bank will have to work with standalone trustees who will appoint them as third party custodian . Currently , of the six domestic custodian banks , only one is without a trustee arm . The five trustee / custodian banks compete
at different levels due to differing service offerings and capabilities . The other competition is from the pure play custodian segment . Custodians are directly appointed for non-unitised funds , direct and discretionary mandates , and they are highly competitive as service offerings are more homogenous , enabling them to quote very low fees .
Where do you see the biggest opportunities over the next year ? One such opportunity is the execution of the Islamic Fund and Wealth Management ( IFWM ) blueprint which aims to consolidate Malaysia ’ s position as a global hub for Islamic funds , anchoring on SRI investment funds . There is also the
“ In 2016 , Islamic fund AUM grew by 13 %, primarily driven by expansion of Islamic unit trust funds while total fund AUM grew 4.3 %.” development of Islamic wealth management services under IFWM . Additionally , there is the introduction of the digital investment services framework by SC as part of SC ’ s digital agenda to provide both retail and institutional investors with a more convenient , affordable and accessible channel to manage and grow their wealth .
Summer 2017 globalcustodian . com 39