SC issues consolidated guidelines on Islamic capital market products and services


THE Securities Commission Malaysia (SC) has issued new guidelines on Islamic Capital Market Products and Services (ICMPS Guidelines), which will be the central source of reference on all the various offerings of ICMPS for sophisticated and retail investors.

In a statement, the statutory body said this forms part of the SC’s initiatives to further enhance the Shariah governance framework for the Islamic capital market.

The ICMPS Guidelines consolidate all Shariah requirements previously set out in various guidelines, including the Guidelines on Unit Trust Funds, Guidelines on Exchange-Traded Funds (ETFs), and Guidelines on Unlisted Capital Market Products under the Lodge and Launch Framework.

According to SC chairman Datuk Seri Dr Awang Adek Hussin, the ICMPS Guidelines, which took effect yesterday (Nov 28), will provide relevant stakeholders with one comprehensive central document on shariah principles and requirements that are applicable to ICM products and services.

He said the ICMPS Guidelines also introduce a new chapter dedicated to waqf.

He added that the SC’s effort to deepen and broaden the ICM, signifies waqf as an important enabler in harnessing the value proposition of Islamic social finance for Sustainable and Responsible Investment initiatives.

Towards this end, he said the expanded Waqf-Featured Fund Framework (WQ-FF Framework) will now include listed funds such as Islamic Real Estate Investment Trusts (REITs) and Islamic ETFs.

He also noted that the expansion will provide product issuers and investors with more options to broaden investment choices in products that allocate all or part of their returns towards socially impactful activities via waqf.

“The release of the ICMPS Guidelines and the expansion of the WQ-FF Framework are in line with the development of the industry and market needs.

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