ASEAN launches initiatives to drive connected, sustainable capital market
Singapore (VNA) – The ASEAN Capital Markets Forum (ACMF), which
met in Singapore on October 11, launched two key
initiatives to drive a more connected and sustainable ASEAN capital market.
These initiatives complement the measures introduced by the ACMF
on collective investment schemes, corporate governance, disclosure standards
and capacity building.
The ACMF launched a framework to facilitate cross-border
movement of investment advisers, which will allow ASEAN investors greater
access to professional services. The ACMF Professional Mobility Framework will
introduce “ACMF Pass”, allowing licensed professionals to provide advisory
services within participating ASEAN jurisdictions, with fast-track registration
and no additional licensing requirements.
Malaysia, Philippines, Singapore and Thailand are the first
countries to join this initiative, to be followed by other countries in due
course.
The ACMF continued to place emphasis on sustainable finance by
launching the ASEAN Social Bond Standards (ASEAN SBS) and the ASEAN
Sustainability Bond Standards (ASEAN SUS). The introduction of the ASEAN SBS
and ASEAN SUS follows the ASEAN Green Bond Standards launched in November 2017.
The ASEAN region now has a complete suite of standards to accelerate the
development of sustainable finance in the region.
According to ACMF Chairman Ranjit Ajit Singh, the standards are
intended to enhance transparency, consistency and uniformity of ASEAN green,
social and sustainability bonds, which will reduce due diligence cost and
assist global investors in making informed investment decisions.
The ASEAN SBS were developed based on the International Capital
Market Association (ICMA)’s Social Bond Principles while the ASEAN SUS
based on ICMA’s Sustainability Bond Guidelines. The proceeds from social bonds
are for financing projects that are socially beneficial, while those from
sustainability bonds will be used to finance a combination of both green and
social projects that respectively offer environmental and social benefits.
As an ACMF member, Vietnam has been making efforts to amend and
harmonize rules and regulations to achieve greater integration into the
regional capital market. The State Securities Commission of Vietnam (SCC) will
soon review legal provisions related to capital market and green bonds to
create a local market uniformed and connected with others in the region, said
SCC Vice Chairman Pham Hong Son.
The ASEAN Capital Markets Forum (ACMF) is a forum
which comprises capital market regulators from 10 ASEAN jurisdictions, namely
Brunei, Cambodia, Indonesia, Laos, Malaysia, Myanmar, Philippines, Singapore,
Thailand and Vietnam.
The ACMF conference delivers a platform for capital market
regulators to exchange ideas, share insights, and collaborate amongst
themselves and with industry experts to formulate action plans to drive the
region’s agenda for deeper and more connected capital markets.
The
2nd conference was held in Singapore under the theme “Sustainability and
Connectivity”. It was attended by over 300 participants from the region,
ranging from asset owners, fund managers, market analysts and other
stakeholders in the financial industry. In keeping with the Conference’s theme,
panel sessions discussed sustainable financing, ASEAN capital markets
connectivity, infrastructure financing as well as financing ASEAN SMEs and
start-ups. –VNA