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SC Approves 3 New Licences For Islamic Fund Management Operations

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Points of Essence:

  • The Securities Commission of Malaysia grants new licenses to Kuwait Finance House, DBS Asset Management and CIMB-Principal Islamic Asset Management to set up Islamic fund management companies in Malaysia. This augurs well with Malaysia’s aspoiration to become an intenational Islamic financial centre.
  • The companies were granted licence for their the scope of operations, their fund management and banking experience, brand value, expertise and geographical presence, as well as compliance and risk management capabilities.

KUALA LUMPUR, July 14 (Bernama) — The Securities Commission (SC) has approved three new licenses, namely to namely Kuwait Finance House, DBS Asset Management and CIMB-Principal Islamic Asset Management for the establishment of Islamic fund management companies (IFMCs) in Malaysia.

The establishment of the three new IFMCs follows the measures announced in Budget 2008 to strengthen Malaysias position as an international Islamic financial centre, the SC said in a statement.

The SC said it is also currently evaluating proposals from other leading fund management companies to establish Islamic fund management operations in Malaysia.

Its chairman Datuk Zarinah Anwar said the commission was pleased with the interest shown by international players to participate in Malaysias capital market.

This reflects the global recognition of Malaysias position as a centre of Islamic finance and enhances Malaysias opportunity to be a leading Islamic fund and wealth management hub, she added.

In granting the approval, the SC had considered, amongst others, the scope of operations that will be established by these companies in Malaysia, their fund management and banking experience, brand value, expertise and geographical presence, as well as compliance and risk management capabilities.

“The approval of these three companies will play a catalytic role in the internationalisation of our Islamic capital market,” said Zarinah.

Meanwhile, Datuk K. Salman Younis, Managing Director of Kuwait Finance House said the groups fund management activities in the region will be consolidated through this platform.

He said the group was excited by the growth prospects that the Malaysian capital market was offering.

He said Kuwait Finance House was also impressed with SC’s speed and efficiency in approving its licence.

The Chief Executive Officer of DBS Asset Management Ltd, Deborah Ho said: “We are pleased to leverage on our existing partnership with Hwang DBS (Malaysia) to set up a dedicated Islamic fund management company.”

The new entity will structure and distribute Islamic asset management products across Asia via synergies with DBS and DBS’ Islamic Bank of Asia, she said, adding that the group was now awaiting the necessary regulatory approvals from the Monetary Authority of Singapore to set it up.

Source: BERNAMA


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