The Malaysian Securities Commission has released guidelines on securitization, with requirements that no other regulatory body in Asia includes. When a company applies to the Securities Commission to do a deal it must include a preliminary rating report and a legal opinion on whether true sale criteria has been met.
The guidelines should help to develop a securitization market. Diane Lam, director at Standard & Poor's reports much interest amongst arrangers and issuers, which has led to many conferences in Kuala Lumpur. "There are several mandates being discussed, for a Ringgit denominated consumer finance deal, and a Ringgit denominated collateralised debt obligation," she said.