Bank Negara Malaysia (BNM)provides guidelines for structured products while the Securities Commission (SC)provides Islamic law compliance for Islamic products adhering to shari'a principles.

Asset securitization in Malaysia is supported under the country’s existing commercial and financial laws. Malaysia’s legal system is based on British common law, which recognizes a trust and the basic structure of securitization.

The Securities Commission (SC) approves all asset-backed securities offerings. SC Guidelines on the Offering of Asset-Backed Securities, which is linked below, provides criteria for securitization transactions as required pursuant to section 32 of the Securities Commission Act 1993. Issuers must also comply with the requirements under the SC Guidelines on the Offering of Private Debt Securities.

SC and Bank Negara Malaysia (BNM) formed the Asset Securitization Consultative Committee to update and amend asset-backed securities guidelines. In 2002, Guidelines on the Offering of Private Debt Securities by Licensed Institutions were issued to facilitate the participation of banking institutions in the asset-back securities market. It enabled banking institutions to undertake both primary and secondary roles in asset-backed securities issuance without seeking a case-by-case approval from BNM. In April 2007, BNM revised its Guidelines on the Offering of Structured Products. The revised guidelines are linked below.

The Securities Commission (SC) created the Shari’a Advisory Council in response to the development of the Islamic capital market. The council is the main reference point for issues relating to market compliance with shari’a principles.

SC provides the list of approved shari’a principles and the council’s resolutions. SC has also issued guidelines on the offering of Islamic securities. The guidelines, which are linked below, introduce a framework for issuing Islamic securities.