Four members of the Association of Southeast Asian Nations (Asean) are joining forces to promote a more connected and sustainable capital market in the region.
Regulators in Malaysia, Philippines, Singapore and Thailand signed a Memorandum of Understanding to participate in the ACMF Professional Mobility Framework.
In the first phase, the ACMF Professional Mobility Framework will introduce the ACMF Pass.
The ACMF Pass will allow licensed professionals to provide advisory services within participating Asean jurisdictions with fast-track registration and no additional licensing requirements.
Meanwhile, the ACMF has also launched the Asean Social Bond Standards (Asean SBS) and the Asean Sustainability Bond Standards (Asean SUS).
The Asean SBS were developed based on the International Capital Market Association (ICMA)’s Social Bond Principles while the Asean SUS were developed based on ICMA’s Sustainability Bond Guidelines.
ACMF said 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 to make informed investment decisions.
Brunei Darussalam, Cambodia, Lao PDR, Malaysia, Myanmar, Philippines, Singapore, Thailand and Vietnam have immediately adopted the standards.
The introduction of the Asean SBS and Asean SUS follows from the Asean Green Bond Standards launched in November 2017.
ACMF said these two standards complement the Asean Green Bond Standards, which have gained encouraging traction.
Citing examples, the ACMF said there were five issuances from Malaysia and Singapore that carry the Asean Green Bond label. Meanwhile, Indonesia has also issued the first sovereign sukuk in Asean that is aligned with the Asean Green Bond Standards.
ACMF’s latest initiatives complement the measures introduced earlier on collective investment schemes, corporate governance, disclosure standards and capacity building.
The ACMF is a high-level grouping of capital market regulators from all 10 Asean jurisdictions, namely Brunei Darussalam, Cambodia, Indonesia, Laos, Malaysia, Myanmar, Philippines, Singapore, Thailand and Vietnam.