Manama, Kingdom of Bahrain: The Shari’ah Board of AAOIFI held its meeting No. 46 from 17 to 19 November 2016 in the Kingdom of Bahrain. Over more than 25 meeting hours, the board discussed specific issues and reviewed a number of technical and Shari'ah reports. The meeting was concluded with issuance of a number of resolutions as well as the adoption of two new Shari'ah standards, raising the total number of AAOIFI Shari'ah standards to 57. These new standards are as follows:
First: Shari’ah Standard No. 56 on Liability of Investment Manager
The standard is addresses a number of important issues on the types of modern applications in various markets across the world. The featured addition to this standard is the detailed explanation on the Shari'ah rulings for liability on the part of the service agent in Sukuk or in syndicated financing contracts and other products.
Moving forward, this standard and its corresponding, detailed Shari’ah study will be shortly made available exclusively to subscribers to the digital version of AAOIFI's standards on AAOIFI's website and via mobile applications (for tablets and smartphones).
Second: Shari’ah Standard No. (57) on Gold and it Trading Controls.
AAOIFI has finally approved this standard after nearly a year of extensive and vigorous efforts, spending more than 100 hours in meetings and discussion sessions with and amongst prominent experts and scholars, in addition to the extensive working hours for the background research, preparations, logistics and technical support in the course of drafting and preparing the standard. This was carried out in collaboration with and support by the World Gold Council and Amanie Advisors, which also provided technical and expert guidance.
These efforts have culminated in the final version of the standard after seven in-depth meetings (some of which lasted for nine straight hours) by the respective subcommittee which was formed for the purpose of developing this standard. The standard also underwent three public hearings held in Oman, Sudan and Malaysia, and attended by a number of scholars and experts from the central banks, Islamic financial institutions, as well as accountants, auditors, lawyers, academics and other prominent experts and practitioners from the gold industry.
Furthermore, the draft standard took up three Shari’ah Board meetings, in presence and participation of 20 prominent scholars from 15 countries and all major schools of Islamic law (Fiqh), over at least 6 meeting days (with an average of 7 hours per day) in order to finalize and adopt the standard in its final version. The standard was then submitted to the AAOIFI drafting committee for final formulation before it is published and made available to the industry, investors and other interested parties from across the globe.
The standard will be officially launched at a press conference whose date will be announced shortly. It will also be published together with other standards in the new edition of AAOIFI's standards. Moreover, the standard will be separately published in digital format and will be made available on a complimentary basis on the websites of AAOIFI and the World Gold Council after official launch.
A brief information about the Accounting and Auditing Organization for Islamic Financial Institutions ("AAOIFI")
AAOIFI, established in 1991 and based in Bahrain, is the leading international not-for-profit organisation primarily responsible for development and issuance of standards for the global Islamic finance industry. It has issued a total of 97 standards in the areas of Shari’ah, accounting, auditing, ethics and governance for international Islamic finance. It is supported by over 200 institutional members, including central banks and regulatory authorities, financial institutions, accounting and auditing firms, and legal firms, from over 45 countries. Its standards are currently followed by all the leading Islamic financial institutions across the world and have introduced a progressive degree of harmonisation of international Islamic finance practices.
For more information, please contact:
Mr. Mohamad H Khaled, Head of Marketing and Public Relations, AAOIFI.
Office Tel: +973 17375404
Mobile: +973 - 34,206,816
© Press Release 2016
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