Regulatory

Regulators set rules for Islamic collateral and begin regulating clearing

Bank Negara Malaysia (BNM) has received industry feedback on its exposure draft on Rahn and expects to implement the new guidelines 18 months after the finalized policy document is issued; while Securities Commission Malaysia (SC) has officially...


Regulatory

Bank Negara Malaysia lifts reserve fund requirement for Islamic banks

Islamic banks no longer need to set aside a certain percentage of their net profits as buffers, effectively freeing up funds to reward shareholders, a move seen as a demonstration of the regulator’s confidence in the capital buffer levels of...


Regulatory

REGULATORY MATTERS

SC launches new framework
Securities Commission Malaysia (SC) has launched the Digital Investment Management framework, setting out licensing and conduct requirements for the offering of automated discretionary portfolio management services....


Regulatory

REGULATORY MATTERS

FMC announces new initiatives The Financial Markets Committee (FMC) has announced initiatives to promote a fair and effective financial market, improve bond market liquidity, ease hedging activities as well as enhance transparency and market...


Regulatory

Regulators to liberalize short-selling framework to boost market liquidity

Regulators are considering regulating Islamic short-selling involving government securities in a move to deepen market liquidity and close the pricing gap between conventional and Shariah papers issued by the government. Regulators are...


Regulatory

REGULATIONS

Bursa seeks feedback on ISSB-NT Bursa Malaysia is seeking public feedback on its Islamic Securities Selling and Buying Negotiated Transaction (ISSB-NT) framework, designed as an Islamic alternative to the existing Securities Borrowing and Lending...


Regulatory

Revised framework boosts Islamic banking risk management practices

Bank Negara Malaysia (BNM) recently revisited the requirements on the use of internal estimates for effective maturity under the Foundation Internal Rating-Based (IRB) Approach, which came into effect on the 2nd March under the revised Capital...


Regulatory

BNM’s latest policy document clears the air on Waad

Uncertainties shrouding unilateral promises used in Islamic financial transactions were cleared this month as the regulator finalized guidelines on Waad after almost a year consulting with market practitioners. Covering the legal enforceability...


Regulatory

REGULATORY

Ombudsman for Financial Services commences
Bank Negara Malaysia (BNM) has announced that the Ombudsman for Financial Services has commenced operations as the operator of the financial ombudsman scheme on the 1st October 2016. The Ombudsman for...


Regulatory

Fintech – to regulate or to deregulate? That is the question.

When it comes to Islamic finance regulatory infrastructure, Malaysia is world class. And it seems that the country is also attempting to build a top-of-the-line conducive regulated ecosystem for a new class of financial firms - fintech– ...