On 10 December 2021, the Securities Commission Malaysia (SC) issued a guideline for Shariah advisers (SAG). The SAG came into effect on 1 January 2022.
Pursuant to the SAG:
- under section 76A of the Capital Markets and Services Act 2007, the service of providing advice is specified to be a capital market service when it concerns Shariah compliance for the purposes of:
- making available, offering or issuing an Islamic capital market product; or
- carrying on an Islamic capital market activity; and
- any person intending to provide the aforementioned capital market services must be registered with the SC and comply with all regulatory requirements set out in the SAG.
The SAG also applies to:
- Islamic banks licensed under the Islamic Financial Services Act 2013; and
- banks or investment banks licensed under the Financial Services Act 2013 and approved under section 15 thereof to carry on Islamic banking business, which will be deemed to be registered with the SC in the capacity of Shariah advisers.
The SAG supersedes the Registration of Shariah Advisers Guidelines, which was issued on 10 August 2009.
For further information on this topic please contact Pamela Kung at Shearn Delamore & Co by telephone (+60 3 2027 2911) or email ([email protected]). The Shearn Delamore & Co website can be accessed at www.shearndelamore.com.