27 October 2021

On 30 September 2021, Bank Negara Malaysia (“BNM”) issued an exposure draft (“Exposure Draft”) on its proposed revisions to the financial reporting obligations imposed on Takaful operators. The Exposure Draft supersedes the policy document on Financial Reporting for Takaful Operators issued by BNM on 3 February 2018.

The objective of the Exposure Draft is to ensure that the financial reporting obligations imposed on Takaful operators comply with (i) the latest Shariah rulings by the Shariah Advisory Council, and (ii) the Malaysian Financial Reporting Standards (“MFRS”). The Exposure Draft sets out, among others things:

  • the specific requirements on the application of the MFRS;
  •  the information to be disclosed in the financial statements;
  •  the application requirements for approval of a dividend payment; and
  •  the requirements on submission and publication of the financial statements.

BNM is inviting written feedback on the Exposure Draft, which can be provided at pfpconsult@bnm.gov.my by 15 November 2021.