 > MIFC Regulatory Infrastructure |
MIFC Regulatory Infrastructure
The legal and Shariah framework is a vital pillar in the sustainable development of Islamic finance. It provides the legislative framework that unambiguously defines the conduct of Islamic financial institutions. It also gives protection to consumers of Islamic finance, ensures the enforceability of Islamic financial contracts and provides and effective mechanism for legal redress.
In Malaysia, the rapid evolution of Islamic finance has been supported by the development of a comprehensive legal infrastructure. A series of legislation since 1983 has provided the foundation for a regulatory regime for Islamic banks, takaful operators, the Shariah Council for Islamic finance, Islamic finance windows in conventional banks and the various forms of bond and money market instruments. In addition, the corporate, securities and insolvency laws and guidelines are compatible with the Shariah.
These legislations have been reinforced by the establishment of a dedicated High Court bench to provide a comprehensive adjudicative system to deal with disputes in Islamic finance contracts and obligations. In addition, the new Islamic Finance Arbitration Rules of the Kuala Lumpur Regional Centre for Arbitration provides a customised mechanism for the resolution of disputes in the Islamic financial services sector. |
