Guidelines on Investment Management for Takaful Operators

As custodian of public funds, a takaful operator has a fiduciary duty to ensure that funds under its management are invested prudently and soundly to avoid undue risk or loss. As the manager of takaful funds, the takaful operator is entrusted with managing contributions made by participants to ensure that payments of takaful benefits, as defined in the takaful contract, are efficiently carried out and that participants’ reasonable expectations are met.

To ensure that takaful operators fulfill their fiduciary duty, these Guidelines on Investment Management for Takaful Operators set out the relevant policies to be observed in managing investment portfolios and the associated risks. The Guidelines are issued to provide takaful operators with a clear understanding of Bank Negara Malaysia’s minimum expectations regarding the governance of takaful funds’ investment activities.

This document belongs to Bank Negara Malaysia (BNM). Full access to the original source is available here: https://www.bnm.gov.my/banking-islamic-banking