25 May, 2017

IIFM embarks on 3 Year Strategic Plan to expand its scope of standardization in Islamic finance

Thursday, May 25, 2017 – BahrainAt its 36th meeting hosted by the Central Bank of Bahrain, the Board of Directors of the International Islamic Financial Market (IIFM) resolved to approve IIFM 3 year strategic plan to take the Islamic finance industry forward by expanding its standardization initiatives and other services to new segments and areas.The main recommendations as part of the strategy in

Thursday, May 25, 2017 – Bahrain

At its 36th meeting hosted by the Central Bank of Bahrain, the Board of Directors of the International Islamic Financial Market (IIFM) resolved to approve IIFM 3 year strategic plan to take the Islamic finance industry forward by expanding its standardization initiatives and other services to new segments and areas.

The main recommendations as part of the strategy involve a number of initiatives, including,  the standardization of new products and agreements, industry advocacy on evolving regulatory landscape, strengthening the collaboration with international and regional bodies, organizing roundtable discussions with regulators and market participants in key jurisdictions, organizing IIFM annual conference, compilation of IIFM standards and related information in a handbook for easy reference and the development of educational programs on IIFM standards.

 “IIFM is recognized as a market leader in Islamic capital and money market, having published 10 standards, it is well positioned to build on this track record to focus on bringing standardization in other areas such as Islamic syndication documentation, gold related wholesale products and agreements and additional Islamic FX and commodity hedging/investment products. The new 3 year strategy is a result of assessing the industrys requirements and comprehensive consideration and approval by the IIFM Board of Directors,” said Mr. Khalid Hamad Abdul Rahman Hamad, Chairman of IIFM.

“IIFM has long established links with international standard-setters and trade associations with ten years of collaborative efforts with ISDA resulting in the publication of the full suite of Islamic hedging standards. Going forward IIFM is looking to work closely with the World Gold Council, Borsa Istanbul, Islamic standard-setting organizations and other industry service providers,” said Mr. Ijlal Ahmed Alvi, Chief Executive of IIFM. “Among the objectives of the three-year strategic plan is to increase market awareness programs by organizing focused roundtables in key regions as well as provide training on IIFM published standards,” he added.  

Also at the meeting, the Board of Directors formalized the appointment of Datuk Ahmad Hizzad Baharuddin, Director General at Labuan Financial Services Authority in Malaysia as the new Vice Chairman of IIFM.

“We appreciate the confidence of the Board of IIFM in Labuan FSA and we look forward to continue supporting IIFM's further contribution to the global Islamic financial market development," said Datuk Ahmad Hizzad.

Mr. Hamad, the IIFM Chairman welcomed the appointment of Datuk Ahmad Hizzad as the new IIFM Vice Chairman by the Board of Directors. He also thanked the IIFM Shari'ah Board for their continued support and guidance.

With regard to the continuation of IIFM in its bid to develop the Islamic financial industry,  IIFM has started 2017 with the publication of Islamic Credit Support Deed for Cash Collateral (Variation Margin) and is currently working with the industry to complete the standard Islamic Risk Participation Agreements for unfunded and funded transactions related to trade finance business. During the year, IIFM will also initiate the development of standard Sukuk documentation and market guidelines and will be publishing the much awaited 6th edition of the IIFM Sukuk Report next month.    

-Ends-

For media enquiries, please contact: 
Usman Mohammad, IIFM, 
Bahrain, + 973 17500161
info@iifm.net

About International Islamic Financial Market (IIFM)
IIFM is a standard-setting body of the Islamic Financial Services Industry (IFSI) focusing on standardization of Islamic financial contracts and product templates relating to the Capital & Money Market, Corporate Finance and Trade Finance segments of the IFSI.

IIFM plays its role in market unification by developing best practices at the global level and achieving Shari’ah harmonization through its efforts for creation of a robust, transparent and efficient Islamic finance industry. IIFM also contributes in creating industry awareness by organizing specialized seminars and workshops as well as publishing research reports.

IIFM was founded in 2002 by the collective efforts of the Islamic Development Bank, Autoriti Monetari Brunei Darussalam (formerly Ministry of Finance Brunei Darussalam), Bank Indonesia, Bank Negara Malaysia (delegated to Labuan Financial Services Authority), Central Bank of Bahrain (formerly Bahrain Monetary Agency) and the Central Bank of Sudan as a neutral and non-profit organization. Besides the founding members, IIFM is also supported by certain regulatory and government bodies such as Indonesia Financial Services Authority, Dubai International Financial Centre Authority, Nasdaq Dubai, State Bank of Pakistan, The National Bank of Kazakhstan, and by a number of international and regional financial institutions active in Islamic finance as well as other market players.

IIFM was formed under Royal Decree No. (23) Dated 2002 as a non-profit organization and based in the Kingdom of Bahrain.

 To date IIFM has published number of key Standard Master Agreements, including:

  • IIFM Standard 10:

ISDA/IIFM Wathiqah Hamish al Rahn al Naqdi (Islamic Credit Support Deed for Cash Collateral (Variation Margin))

  • IIFM Standard 9:

ISDA/IIFM Wiqayah Min Taqallub As’aar Assarf (Islamic Foreign Exchange Forward) – Two Unilateral and Independent Wa’ad based IFX Forward Standard

  • IIFM Standard 8:

ISDA/IIFM Wiqayah Min Taqallub As’aar Assarf (Islamic Foreign Exchange Forward) – Single Binding Wa’ad based IFX Forward Standard

  • IIFM Standard 7:

ISDA/IIFM Himaayah Min Taqallub As‘aar Assarf (Islamic Cross Currency Swap) Standard Documentation

  • IIFM Standard 6:

IIFM Master Collateralized Murabahah Agreement & its Operational Guidance Memorandum

  • IIFM Standard 5:

IIFM Inter-Bank Unrestricted Master Investment Wakalah Agreement & its Operational Guidance Memorandum

  • IIFM Standard 4:

ISDA/IIFM Tahawwut (Hedging) Master Agreement & Explanatory Memorandum

  • IIFM Standard 3:

ISDA/IIFM Mubadalatul Arbaah (Profit Rate Swap) Standard Documentation (Single Sale Structure)

  • IIFM Standard 2:

ISDA/IIFM Mubadalatul Arbaah (Profit Rate Swap) Standard Documentation (Two Sale Structure)

  • IIFM Standard 1:

IIFM Master Agreements for Treasury Placement & Structure Memorandum

IIFM is currently developing several more important documentation and product standards related to the Islamic financial market and organizes a number of industry awareness seminars and workshops.

IIFM also carries out research and has so far published five editions of its Sukuk Reports.

Information on IIFM and its activities is available on www.iifm.net

© Press Release 2017

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