6.2.1. Assets not admitted to trading on a regulated financial market

A Takaful Operator must ensure that assets and securities that are not admitted to trading on a regulated financial market are kept to prudent levels.

6.2.2. Derivatives

(1) A Takaful Operator must not use a Derivative instrument for speculation or proprietary trading.

(2) A Takaful Operator may only use a Shari’ah-compliant Derivative instrument:

• (a) to apply an index tracking strategy to part or all of a portfolio;
• (b) to apply capital protected strategies to part or all of a portfolio;
• (c) to apply efficient portfolio management techniques to a portfolio; or
• (d) to reduce investment risk currently employed on a portfolio.

6.2.3. Forward foreign exchange transactions

A Takaful Operator must not invest in forward foreign exchange transactions save to the extent that they hedge currency exposures to currencies other than the reporting currency in its prudential returns.