Malaysia

Guidelines on Investments Linked to Derivatives

Christopher Lee (Partner), Wong & Partners,* Kuala Lumpur, Malaysia, (christopher.lee@wongpartners.com), *Member Firm of Baker & McKenzie

Bank Negara Malaysia (BNM) has recently, on 6 April 2005, issued revised guidelines to banking institutions on the offering of investments which are linked to derivatives (ILD). The Guidelines supercede the previous guidelines, which were issued on 12 May 2003 (previous guidelines). The Guidelines took immediate effect from 6 April 2005.