SC launches framework to facilitate offering of Islamic funds with waqf features


The Securities Commission Malaysia (SC) has today launched the Waqf-Featured Fund Framework, a new framework to facilitate the offering of Islamic funds with waqf (Islamic endowment) features to enable the growth of the Islamic social finance segment.

SC said the new framework will broaden the range of innovative Islamic capital market products and provide the public access to Islamic funds that allocate whole or part of the fund’s returns towards socially impactful activities via waqf.

"The framework is applicable to existing and newly-launched unit trust and wholesale funds. It sets out eligible waqf recipients and disclosure requirements in order to promote transparency of investors’ investments and the waqf distribution," it said in a statement today.

Waqf is an Islamic endowment instrument typically linked with social development and philanthropic objectives. SC said the framework, which came into force today, will integrate commercial with social objectives and enable investments for the greater good of society.

"Over the years, the SC has made efforts to facilitate the development of waqf through several initiatives by organising thought leadership platforms including hosting a dedicated industry roundtable in collaboration with the Oxford Centre for Islamic Studies, introducing the Sustainable and Responsible Investment (SRI) Sukuk framework that incorporates the development of waqf assets as an eligible SRI project, as well as facilitating the offering of the world’s first waqf shares," SC added.

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