Deutsche Trustees Malaysia Bhd has obtained the nation's first Shariah-compliant certification for its Islamic trustee business operations.
The certification comes from Amanie Advisors Sdn Bhd, a private advisory firm.
DTMB's Islamic assets under management have grown by 68% between 2015 and 2018, and the company remains a key player in the Islamic market in Malaysia, having been appointed as trustee for 13% of the Islamic collective investment schemes in the market, which the Securities Commission estimated was worth 158.8 billion ringgit ($39bn) in 2018.
By obtaining this certification, DTMB is well positioned to manage Islamic collective investment schemes looking for fully compliant trusteeship"
Richard Lim, chief executive officer of DTMB, said: "We are proud to be the first trustee to receive this certification, which will give investors greater comfort in knowing that our processes for Islamic Funds meet the Shariah-compliant standards set by Amanie Advisors Sdn Bhd. By obtaining this certification, DTMB is well positioned to manage Islamic collective investment schemes looking for fully compliant trusteeship."
Some of the requirements for a Shariah-compliant certification include the exclusion of investments which derive a majority of their income from the sale of alcohol, pork products, pornography, gambling, military equipment or weapons. Other characteristics of a Shariah-compliant certification include an appointed Shariah board, an annual Shariah audit and purifying certain prohibited types of income, such as interest, by donating them to a charity.
Shariah-compliant certifications are usually determined by a board of Shariah experts.