SC issues new guidelines to improve syariah governance


PETALING JAYA: The Securities Commission (SC) has issued new guidelines on Islamic Capital Market Products and Services (ICMPS Guidelines) as part of its efforts to improved the syariah governance framework for the Islamic Capital market.

In a statement, SC stated that as the main source of reference on all various offerings of Islamic Capital Market (ICM) products and services, the ICMPS Guidelines will consolidate all the syariah requirements that were previously set out in various guidelines.

The ICMPS include the guidelines on unit trust funds, exchange-traded funds and unlisted capital market products under the lodge and launch framework.

The ICMPS Guidelines are effective as of Nov 28, 2022, and entail a detail central documents on syariah principles and requirements, applicable to ICM products and services.

Thee SC stated a chapter on waqf can be found in the ICMPS as a bid to deepen and broaden the ICM. In terms of capturing the value proposition of Islamic social finance for sustainable and responsible investment initiatives, the waqf is a crucial enabler.

Listed funds such as Islamic Real Estate Investment Trusts and Islamic Exchange Traded Funds are included in the enlarged Waqf-Featured Fund Framework (WQ-FF Framework).

SC chairman Datuk Seri Awang Adek Hussin said the ICMPS Guidelines and the expansion of the WQ-FF Framework are in line with the development of the industry and needs of the market.

“Innovation is the key to remain relevant and solidify Malaysia’s role at the forefront of shariah market-based advancements,” he said.

The SC added the amended framework can provide more options for product issuers and investors to widen their investment choices. They will be exposed to products that allocate all or part of their returns towards socially impactful activities via waqf.

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