MFSA close to issuing guidelines on Islamic securities market

The Malta Financial Services Authority is close to concluding technical studies which will put it in a position to publish guidelines on an Islamic securities market in the first half of 2010. In the case of Islamic banking, a number of legal and technical difficulties have been identified that are being studied by the competent authorities before proceeding further.

Finance Minister Tonio Fenech revealed the lie of the land when he answered a parliamentary question by Labour MP Leo Brincat.

He pointed out that the original consultation document, as well as the feedback statement issued later by the MFSA regarding the introduction of Islamic finance to Malta, referred specifically to the banking sector (including retail banking and other banking transactions such as project financing) and to the securities sector, including fund management.

The consultation document did not refer to the insurance sector, which was planned to be treated at a later stage.