SINGAPORE (April 4): iFAST Corporation’s wholly-owned Malaysian subsidiary, iFAST Capital, is launching investment-grade bonds for retail investors to purchase through its online portal FSMOne, as well as through FA companies and financial institutions which use iFAST’s platform services.
With the new product launch, investors may purchase retail-qualified bonds and sukuk (bonds following Shariah principles) starting from RM1,000 ($332).
The bonds will be sold on iFAST Capital’s FSMOne online portal formerly known as Fundsupermart.com.my – as well as through FA companies and financial institutions that use iFAST’s business-to-business platform services.
iFAST’s launch of its retail bonds comes under Securities Commission’s (SC) new regulatory framework that, among others, allows bond issues to non-sophisticated retail investors through a product highlight sheet, without the need to make disclosures via a full-fledged prospectus.
Before the new SC framework, only sophisticated investors with at least RM3 million in assets, or an annual income of over RM300,000, were allowed to participate in iFAST transactions of government and corporate bonds.
“The high barrier of entry and the lack of accessibility to critical information pertaining to bonds has meant that bonds have not been a fixture in many investors’ portfolios… With the new seasoning framework and what we are offering on our platforms, investors can now invest in investment grade bonds from as low as RM1,000,” says Dennis Tan, managing director of iFAST Capital Malaysia.
Shares in iFAST closed 2 cents higher at $1.11 on Wednesday.
