The Legal 500

Money Services Business Act 2011 (the “Act”) is an act to provide for the licensing, regulation and supervision of money services business. The Act defines money services business as money-changing business, remittance business and whole sale currency business.

Islamic finance is undergoing various progressive stages as one of the fastest growing asset classes in the world. In spite of the continuing aftershock of the global financial crisis and the Dubai debt standstill, the industry is expanding in many emerging markets and introducing new standards that should help develop products and attract investors.

The new Equity Guidlines of the Malaysian Securities Commission (SC) came into effect on August 3 2009. As a result, the SC's prior approval under section 212 of the Capital Markets and Services Act 2007 will no longer be required for many corporate proposals, save for certain substantive corporate proposals in the main market of Bursa Malaysia Securities Berhad (the Malaysian stock exchange).

Sukuk in general market parlance refers to negotiable financial instraments that do not have elements that are prohibited in Island. Formal definitions can be found in international standards of the Accounting and Auditing Organisation for Islamic Financial Institutions (Aaoifi) as well as local regulatory guidlines such as in the case of Malaysia issued by the Securities Commission of Malaysia.

Payment defaults is contemplated by Islamic finance. All legal documentation in Islamic finance does provide for payment default. Perhaps what is not contemplated is the unintended consequences of a default in relation to the shariah contract.

Abridged version of paper presented by Ivan Ho Yue Chan at the Conference on Legal and Tax Aspects of Joint Ventures and Mergers & Acquisitions organized by the Asia Business Forum on 28 February 2008 at JW Marriot Hotel, Kuala Lumpur.

Effective 8 May 2009, the Securities Commission amended its Guidelines for the Issue of Structured Warrants. The major amendments to the Guidelines include the introduction of market making which allows issuers to provide liquidity through market making in lieu of the shareholding spread requirement and allowing issuances of structured warrants where foreign and local exchange traded funds (ETFs) are the underlying instruments. The key amendments are set out below:-