MFSA soon to issue guidelines on Islamic securities market

28th January 2010 – In the first half on 2010, the Malta Financial Services Authority plans to publish guidelines on an Islamic securities market, following extensive technical studies on the subject. A number of legal and technical difficulties have been identified In the case of Islamic banking, which are being studied by the competent authorities before proceeding further.

Finance Minister Tonio Fenech, was keen to point out that, the original consultation document, as well as the feedback statement issued later by the MFSA regarding the introduction of Islamic finance to Malta, referred specifically to the banking sector (including retail banking and other banking transactions such as project financing) and to the securities sector, including fund management. The consultation document did not refer to the insurance sector, which was planned to be treated at a later stage.