The MFSA has published its Feedback Statement outlining position and way forward on the introduction of a framework for Islamic Finance.
The Statement summarises the comments on issues raised in the Consultation Document "Islamic Finance in Malta - application to banking & securities" issued earlier this year.
Feedback provided by both local and overseas respondents agreed that given its increasing relevance as a financial centre and its geo-strategic position Malta appears to have potential in the field of Sharia Finance. Most of the respondents agreed with the main proposals and recommendations made in the Consultation Document, suggesting a number of legal and technical improvements.
The Feedback Document also lists a number of other considerations which revolve around the various operational challenges associated with Sharia Institutions and Sharia Funds. Although these considerations were beyond the scope of the original document they will also be taken into account when formulating any ad hoc rules applicable to Islamic Institutions and Sharia Funds.
In view of the positive feedback received from all respondents, the MFSA will be taking the project forward and will in the coming weeks be seeking further advice from Sharia experts in connection with the implementation of the matters raised in the Consultation Document. The MFSA has also set up an Expert Group to identify in further detail the necessary legal and regulatory changes and to assist in the proper implementation of the proposed revisions. The Group is made up of Dr Louis Degabriele, Dr James Muscat Azzopardi, Mr James Farrugia, Mr Ailwin Cuschieri and Dr Michael Xuereb, who will also be chairing the Group.
The Feedback Statement may be downloaded from the Announcements/Consultations section on the MFSA website: www.mfsa.com.mt.
MFSA web site: http://www.mfsa.com.mt
Registry web site: http://registry.mfsa.com.mt
Consumer web site: http://www.mfsa.com.mt/consumer
The Statement summarises the comments on issues raised in the Consultation Document "Islamic Finance in Malta - application to banking & securities" issued earlier this year.
Feedback provided by both local and overseas respondents agreed that given its increasing relevance as a financial centre and its geo-strategic position Malta appears to have potential in the field of Sharia Finance. Most of the respondents agreed with the main proposals and recommendations made in the Consultation Document, suggesting a number of legal and technical improvements.
The Feedback Document also lists a number of other considerations which revolve around the various operational challenges associated with Sharia Institutions and Sharia Funds. Although these considerations were beyond the scope of the original document they will also be taken into account when formulating any ad hoc rules applicable to Islamic Institutions and Sharia Funds.
In view of the positive feedback received from all respondents, the MFSA will be taking the project forward and will in the coming weeks be seeking further advice from Sharia experts in connection with the implementation of the matters raised in the Consultation Document. The MFSA has also set up an Expert Group to identify in further detail the necessary legal and regulatory changes and to assist in the proper implementation of the proposed revisions. The Group is made up of Dr Louis Degabriele, Dr James Muscat Azzopardi, Mr James Farrugia, Mr Ailwin Cuschieri and Dr Michael Xuereb, who will also be chairing the Group.
The Feedback Statement may be downloaded from the Announcements/Consultations section on the MFSA website: www.mfsa.com.mt.
MFSA web site: http://www.mfsa.com.mt
Registry web site: http://registry.mfsa.com.mt
Consumer web site: http://www.mfsa.com.mt/consumer