Suruhanjaya Sekuriti, otherwise known as the Securities Commission Malaysia, has updated its guidelines that govern Islamic funds.

In addition to complying with statutory and general requirements imposed by the securities law, the compliance officer of an Islamic fund management company must ensure that its business complies with those guidelines and relevant SC regulations and/or standards. He must report any Shariah non-compliance directly to the Shariah adviser and board of directors of the Islamic fund management company for consideration and/or immediate remedialaction.

The compliance officer must also report the matter to the SC. He is expected to help the Shariah adviser in preparing and certifying that the Islamic fund management business is carried out in accordance with Shariah principles.