The book discusses the need to develop international regulatory standards and best practices relating to disclosure requirements for ICM products. It analyses the issues, risks and challenges arising from potential inadequate disclosure in the areas of Sukūk and Islamic Collective Investment Schemes, and analyses ways to strengthen disclosure standards for ICM products.
The IFSB, IOSCO and SC recognise the need to complement the increasing internationalisation of ICM with a favourable regulatory environment. The collaboration between the three bodies represents a significant step towards the development and enhancement of international regulatory standards and best practices relating to disclosure requirements for ICM products. The joint initiative further underscores the importance of ICM within the global financial landscape and highlights the need to approach investor protection and market integrity from a cross-jurisdictional perspective.
The IFSB, as the international standard-setting organisation for the Islamic financial services industry, seeks to strengthen the regulatory requirements for disclosure to make it more comprehensive for the industry. The book´s release follows earlier ICM initiatives by IOSCO: the publication of the Islamic Capital Market Fact Finding Report in 2004 and the Analysis of the Application of IOSCO’s Objectives and Principles of Securities Regulation for Islamic Securities Products in 2008. The first report concluded that the IOSCO Objectives and Principles of Securities Regulation would apply equally to the ICM, a view supported by the 2008 report with recommendations, among others, for further thematic work on disclosure standards.
The publication of this book is timely in view of the growing cross-border transactions and activities in the ICM, which call for some degree of standardisation, including disclosure requirements. The book is aimed at helping strengthen the disclosure regime for the ICM and promote overall investor confidence in this increasingly important segment of the global financial system.
SECURITIES COMMISSION MALAYSIA
