Capital Market and Islamic Finance: Synergies and

Transcript:Capital Market and Islamic Finance: Synergies and:
Capital Market and Islamic Finance: Synergies and Opportunities Zainal Izlan Zainal Abidin Securities Commission Malaysia BRUNEI DARUSSALAM ISLAMIC CAPITAL MARKET (BICAM) CONFERENCE 22 October 2018 2 REGULATING THE (ISLAMIC) CAPITAL MARKET 3 Protection of investors Ensuring markets are fair, efficient and transparent Reduction of systemic risks International Standards and Best Practices for Capital Market Regulation 3 4 Analysis of the Application of IOSCO’s Objectives and Principles of Securities Regulation for Islamic Securities Products (September 2008) – to assess the compatibility of IOSCO’s core principles with the products and practices of Islamic finance “The analysis of this report has not identified any concerns with respect to the compatibility of the IOSCO Core Principles with the Islamic securities market” The overall findings are broadly consistent with the findings of the Report of the ICM Task Force of the IOSCO (July 2004) Report of the ICM Task Force of the IOSCO (July 2004) – to assess the extent of the development from a regulatory perspective and potential regulatory issues relating to ICM “the conventional securities regulation framework and principles equally apply to the ICM, with the addition of some form of a Shariah approval or certification process - no need to formulate separate regulatory principles for the Islamic capital market. By extension, IOSCO’s objectives and principles of securities regulation can be applied to the Islamic capital market” No Requirement for Separate Regulation in Developing Islamic Capital Market 4 … protection of investors is achieved through disclosure …conforms to IOSCO’s Principles of Securities Regulations 5 Emphasis on Disclosure for both Islamic and Conventional Capital Markets 6 A two-tier regulatory framework in Malaysia 7 Conducive ecosystem to support the development of ICM Well Developed Legal and Regulatory Framework Facilitative Tax Framework Sound Shariah Governance Framework Strong Government Support and Commitment 8 SYNERGIES & OPPORTUNITIES 9 Navigating through changing global landscape Rising affluence Global sustainability agenda Islamic finance in financial centres Demand for Islamic solutions Digitalisation 10 Funding for sustainable development goals 17 global goals to achieve integrated sustainable development covering economic, social and environmental UN estimated US$11.5tn a year or US$172.5tn over 15 years to fund the 17 SDGs UN Sustainable Development Goals (SDGs) 11 Green Finance Green finance products: green bonds green lending guidelines green banks carbon finance green insurance green IPOs green stock indices green credit green asset securitization Source: ADB Green finance is finance for a sustainable planet. It covers the gamut