Guidelines and Policies for Islamic Fund and Wealth Management

14 Jun 2013 | Friday

Islamic Fund Management businesses in Malaysia are required to register with Securities Commission Malaysia (SC) and are governed by Section 377 of the Capital Market Services Act 2007.

These guideline will be applied for Islamic fund managers, who are Capital Market Services License (CMSL) holders, and whose sole purpose it is to carry on Islamic fund management activities.

Conditions for Establishment

An Islamic fund management company is subject to the following conditions:

• More than 50% foreign equity ownership and incorporated in Malaysia
• Carry out fund management activities
• Carry out its activities from an office in Malaysia
• Comply with the licensing requirements under the securities laws
• Paid up capital shall be at least RM2 million
• Parent company (or holding or related company) must have a sound track record in the international fund management industry

Requirements

• Memorandum of Articles of Association must state the business aims to achieve commercial objectives and following Shariah principles;

Appointment of Shariah Adviser:
Approved individual or a corporation

• An Islamic bank or a licensed institution approved by Bank Negara Malaysia to carry on an Islamic banking business

For more on the requirements to carry out Islamic fund management business in Malaysia, please refer to Guidelines on Islamic Fund Management and Guidelines for the Establishment of Foreign Fund Management Companies.