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 Islamic Capital Market (ICM) products and services for sophisticated and retail investors.

In a statement on Monday (Nov 28), the regulator 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, and Guidelines on Unlisted Capital Market Products under the Lodge and Launch Framework.

SC chairman Datuk Seri Dr. Awang Adek Hussin said the ICMPS Guidelines, which take effect on Monday (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.

In the SC’s effort to deepen and broaden the ICM, this signifies waqf as an important enabler in harnessing the value proposition of Islamic social finance for Sustainable and Responsible Investment (SRI) initiatives.

Dr Awang Adek said 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,” he said.

https://www.theedgemarkets.com/article/sc-issues-consolidated-guidelines-islamic-capital-market-products-and-services