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2026 Statistics

Key Facts: Shariah RFP M3 Exam

Exam Questions

MFPC

2h 30m

Time Limit

MFPC

50%

Passing Score

MFPC

33%

SC Cash/Debt Limit

Securities Commission

20%

i-REIT Tenant Limit

Securities Commission

2.5775%

Solar Zakat Rate

Islamic Jurisprudence

The MFPC Shariah RFP Module 3 exam consists of 75 MCQs in 2 hours 30 minutes with a passing score of 50%. It is a core module for the Shariah Registered Financial Planner designation. The syllabus covers Islamic capital market regulations (20%), Shariah screening benchmarks (20%), Islamic equities and unit trusts (25%), Sukuk structures and valuation (25%), and portfolio management/Zakat (10%).

Sample Shariah RFP M3 Practice Questions

Try these sample questions to test your Shariah RFP M3 exam readiness. Each question includes a detailed explanation. Start the interactive quiz above for the full 100+ question experience with AI tutoring.

1Which statutory body is primary responsible for the regulation, supervision, and development of the Islamic Capital Market (ICM) in Malaysia?

A.Bank Negara Malaysia (BNM)

B.Securities Commission Malaysia (SC)

C.Malaysian Financial Planning Council (MFPC)

D.Bursa Malaysia Securities Berhad

Explanation: Under the Securities Commission Act 1993 and the Capital Markets and Services Act 2007 (CMSA), the Securities Commission Malaysia (SC) is the primary statutory regulator responsible for supervising and developing the Islamic Capital Market, including approving Islamic securities and licensing market intermediaries. Bank Negara Malaysia (BNM) regulates Islamic banking and Takaful, while Bursa Malaysia is the exchange operator.

2Under the Central Bank of Malaysia Act 2009 and the Capital Markets and Services Act 2007, what is the legal status of rulings issued by the Shariah Advisory Councils (SAC) of BNM and the SC in a court of law?

A.They are advisory only and can be overridden by civil judges.

B.They are subject to approval by the Minister of Finance before being presented in court.

C.They are final and binding on civil courts and arbitrators regarding Shariah issues.

D.They are only binding on Islamic financial institutions but not on conventional courts.

Explanation: Under Section 56 of the Central Bank of Malaysia Act 2009 and Section 316G of the Capital Markets and Services Act 2007, rulings issued by the Shariah Advisory Councils of BNM and the SC are final and binding on any court or arbitrator. When a Shariah issue arises in court proceedings, the court is legally required to refer the question to the respective SAC for a ruling.

3Which of the following elements is defined as the exchange of ribawi items of the same genus (e.g., gold for gold or dates for dates) with an unequal weight or quantity?

A.Riba al-Nasi'ah

B.Riba al-Fadl

C.Gharar Fahish

D.Maysir

Explanation: Riba al-Fadl is the riba of excess, which occurs in the hand-to-hand (spot) exchange of ribawi goods of the same genus where there is inequality in weight, measure, or quantity. Riba al-Nasi'ah refers to the riba of delay, which is the interest charged for delaying repayment of a debt.

4An investor enters into a contract to purchase fish that have not yet been caught from a fisherman's net. Which type of prohibited transaction element is most prominently featured in this agreement?

A.Riba al-Jahiliyyah

B.Gharar Yasir

C.Gharar Fahish

D.Maysir

Explanation: Gharar Fahish (major uncertainty) exists in a contract where the subject matter is non-existent, cannot be delivered, or is completely unknown. Selling fish that are still in the water and not yet caught is a classic example of Gharar Fahish because delivery cannot be guaranteed, making the contract void (batil). Gharar Yasir (minor uncertainty) is tolerated and does not void a contract.

5Which of the following is a primary duty of a Shariah Committee in a Malaysian Islamic Financial Institution (IFI) under BNM's Shariah Governance Framework?

A.Managing the day-to-day operations and investment strategies of the Islamic bank.

B.Providing independent Shariah views and ensuring that the operations and products of the IFI are compliant with Shariah.

C.Setting the conventional interbank interest rates to match Islamic returns.

D.Conducting forensic financial audits under the Malaysian Companies Act.

Explanation: Under the Shariah Governance Framework (SGF) issued by Bank Negara Malaysia, the primary duty of the Shariah Committee is to provide objective and independent Shariah views, perform Shariah supervision, and ensure that the IFI's business operations, contracts, and products comply with Shariah rules and SAC guidelines.

6What primary feature distinguishes legitimate commercial risk-taking (Ghunm) in Islamic finance from gambling (Maysir)?

A.Ghunm requires that profit is guaranteed whereas Maysir does not.

B.Ghunm involves value creation and the sharing of genuine economic risk, whereas Maysir is a zero-sum game of chance with no underlying utility.

C.Maysir is permitted if the proceeds are donated to a recognized charity, while Ghunm is not.

D.Ghunm is restricted to equity investments while Maysir is restricted to derivative instruments.

Explanation: Islamic finance encourages commercial risk-taking (Ghunm) linked to ownership and economic activity, where parties share profits and losses, contributing to economic utility. Maysir (gambling) is a zero-sum game where one party wins purely at the expense of another based on chance, creating no real economic value and is strictly prohibited.

7Which type of Riba represents the default interest or penalties charged on a debtor who fails to repay a loan within the agreed-upon period?

A.Riba al-Fadl

B.Riba al-Jahiliyyah

C.Riba al-Buyu'

D.Riba al-Qard

Explanation: Riba al-Jahiliyyah (also known as Riba al-Nasi'ah or debt usury) refers to the practice where a lender demands payment of interest or increases the debt amount as a penalty for delaying repayment after the due date. This is the primary form of riba prohibited in the Quran.

8In Malaysia, what is the role of Bursa Suq Al-Sila' (BSAS) in the Islamic financial system?

A.It is a Shariah-compliant retail stock market for trading blue-chip equities.

B.It is a commodity trading platform used by Islamic financial institutions to facilitate Tawarruq (Commodity Murabahah) transactions.

C.It is a regulatory tribunal that settles disputes between Islamic banks and clients.

D.It is a clearing house for Islamic derivatives and gold-backed futures contracts.

Explanation: Bursa Suq Al-Sila' (BSAS) is a world-first, Shariah-compliant commodity trading platform operated by Bursa Malaysia. It is specifically designed to facilitate Tawarruq (Commodity Murabahah) transactions, allowing Islamic financial institutions to manage liquidity and structure personal financing, deposits, and corporate funding using real commodities (like Crude Palm Oil).

9Which of the following represents the correct sequential flow of a Tawarruq (Commodity Murabahah) deposit structure at an Islamic bank?

A.Bank buys commodity from Broker A; Bank sells commodity to depositor at cost-plus profit on deferred payment; Depositor sells commodity to Broker B for cash.

B.Depositor buys commodity from Broker A; Depositor sells commodity to Bank at cost-plus profit on deferred payment; Bank sells commodity to Broker B for cash.

C.Bank acts as depositor's agent to buy commodity from Broker A; Bank sells commodity to Broker B at cost-plus deferred payment; Broker B pays depositor directly.

D.Depositor lends cash to Bank on a Qard basis; Bank buys commodity from Broker A; Bank sells commodity to Broker B on behalf of depositor.

Explanation: In a Tawarruq deposit structure (where the depositor provides liquidity to the bank): 1. The depositor (or the bank acting as the depositor's agent/Wakeel) buys a commodity from Broker A for spot cash. 2. The depositor sells the commodity to the Bank at a cost-plus profit price on a deferred payment basis (establishing the bank's liability to pay the depositor). 3. The Bank sells the commodity to Broker B for spot cash to obtain liquidity.

10Under the Hadith on Ribawi items, if gold is exchanged for gold, or silver is exchanged for silver, what two conditions must be met for the transaction to be Shariah-compliant?

A.The exchange must be of unequal weight and completed within 3 business days.

B.The exchange must be of equal weight and completed on a deferred payment basis.

C.The exchange must be of equal weight (equal quantity) and settled on the spot (immediate delivery).

D.The exchange must be certified by a Shariah adviser and conducted in a mosque.

Explanation: According to the famous Hadith of the Prophet Muhammad (PBUH), when exchanging ribawi items of the same genus (gold for gold, silver for silver, wheat for wheat, barley for barley, dates for dates, salt for salt), the transaction must be equal-for-equal (equal weight/measure) and hand-to-hand (spot). Any inequality or delay results in Riba.

About the Shariah RFP M3 Exam

The Shariah RFP Module 3 - Shariah Investment Planning is a specialized professional qualification in Malaysia that equips financial planners with the knowledge and tools to evaluate, construct, and manage Shariah-compliant investment portfolios. The syllabus covers the regulatory frameworks governing Islamic capital markets, Shariah screening benchmarks, Islamic equities, unit trusts, ETFs, Sukuk evaluation, and portfolio performance analysis.

Assessment

75 multiple-choice questions (MCQs) in 2 hours 30 minutes

Time Limit

2 hours 30 minutes

Passing Score

50%

Exam Fee

~RM 300 (Malaysian Financial Planning Council (MFPC))

Shariah RFP M3 Exam Content Outline

20%

Islamic capital market structure & regulations

Regulatory framework in Malaysia, Shariah Advisory Councils of SC and BNM, CMSA 2007, prohibited elements, and Shariah governance.

20%

Shariah investment screening & indices

Securities Commission Malaysia screening benchmarks (5% and 20% business limits, 33% financial limits), international screening methodologies, and dividend purification calculations.

25%

Islamic asset classes: Shariah-compliant equities, Islamic unit trusts

Shariah-compliant equities, Islamic unit trusts, Islamic REITs, Gold and equity i-ETFs, venture capital, and Islamic money market instruments.

25%

Sukuk (Islamic bonds): structures, valuation, and risks

Sukuk concepts, structures (Ijarah, Murabahah, Wakalah, Mudharabah, Musharakah), pricing, valuation, credit rating, and risk management.

10%

Islamic portfolio management & asset allocation

Portfolio construction, strategic asset allocation under Shariah constraints, performance measures (Sharpe, Treynor), and Zakat calculations.

How to Pass the Shariah RFP M3 Exam

What You Need to Know

Passing score: 50%
Assessment: 75 multiple-choice questions (MCQs) in 2 hours 30 minutes
Time limit: 2 hours 30 minutes
Exam fee: ~RM 300

Keys to Passing

Complete 500+ practice questions
Score 80%+ consistently before scheduling
Focus on highest-weighted sections
Use our AI tutor for tough concepts

Shariah RFP M3 Study Tips from Top Performers

1Master the two-tier Shariah screening process of the Securities Commission Malaysia: the 5% and 20% business activity benchmarks, and the 33% financial ratio benchmarks for debt and cash.

2Understand the primary structures of Sukuk, especially the differences between Ijarah (leasing), Murabahah (cost-plus), Wakalah (agency), and Musharakah/Mudharabah (partnership).

3Practice dividend purification calculations, knowing when to purify and how to calculate the purification amount based on non-compliant revenue ratios.

4Review the calculation of Zakat on investments, particularly the 2.5% rate for lunar calendar years and the adjusted 2.5775% rate for solar calendar years.

5Know the statutory roles of the Shariah Advisory Councils (SAC) of Bank Negara Malaysia and the Securities Commission, and how their rulings are binding in courts of law.

6Familiarize yourself with the 20% rental income cap for Shariah non-compliant tenants in Malaysian Islamic REITs.

Frequently Asked Questions

What is the format and duration of the Shariah RFP Module 3 exam?

The examination is a computer-based test comprising 75 multiple-choice questions (MCQs) to be completed in 2 hours 30 minutes. There is no negative marking for incorrect answers.

What is the passing mark for this module?

The passing mark is 50%. Candidates must pass this and other modules to obtain the Shariah Registered Financial Planner (Shariah RFP) designation.

Does this qualification license me to sell investment products?

No. The Shariah RFP is a professional education program. To act as a licensed financial planner in Malaysia, you must apply for a Capital Markets Services Representative's License (CMSRL) from the Securities Commission Malaysia and a Financial Adviser's Representative (FAR) license from Bank Negara Malaysia.

How are the Securities Commission Shariah screening guidelines represented in the exam?

The exam heavily tests both the business activity benchmarks (5% and 20% thresholds) and financial ratio benchmarks (33% cash and debt limits) established by the SC Shariah Advisory Council, as well as dividend purification calculations.

What is the cost of registration and examination for this module?

The examination fee for each module is approximately RM 300 for student members of the Malaysian Financial Planning Council (MFPC).