Kuala Lumpur, Malaysia – The IFSB is releasing its third set of Frequently Asked Questions (FAQs) on four of its Standards, namely, Guiding Principles on Corporate Governance for Institutions Offering Only Islamic Financial Services (IIFS) (IFSB-3); Guiding Principles on Governance for Islamic Collective Investment Schemes (ICIS)” (IFSB-6); Standard On Risk Management for Takāful Undertakings (IFSB-14); and Technical Note on Financial Inclusion and Islamic Finance (TN-3) today. These FAQs are aimed at enhancing the implementation of the four IFSB standards among the member jurisdictions through presenting clarifications and explanative directions on the issued Standards.
 
The Secretary-General of the IFSB, Dr. Bello Lawal Danbatta commented on the significance of the IFSB’s implementation initiatives via FAQs publication, “The IFSB has always promoted consistency when it comes to membership support. The current situation of COVID-19 have further necessitated a great need for alternative approaches to business processes.” Dr. Bello continued, “The IFSB thus leverages on technological solutions through easily accessible implementation tools to help build a proper understanding and application of issued IFSB standards and technical notes.”
 
FAQs for IFSB-3 gives explanations, among other things, of main principles on establishing a comprehensive governance policy framework for IIFS, provides insights on best practices for the governance committee in the IIFS and managing investment account holders. It also offers recommendation on obtaining rulings from Sharī`ah scholars and dealing with different Sharī`ah opinions.
 
The FAQ responses for IFSB-6 provide guidance on what ICIS are. It also expounds on whether Sukūk may be considered as ICIS in addition to following up with the scope of ICIS governance and main guiding principles. 
 
IFSB-14 covers the risk management for Islamic insurance, and FAQs for this standard are developed to address the risks specific to Takāful and Sharī`ah specificities in risk managements process for takāful undertakings, as well as the key elements of the supervisory review process are also covered.
 
The fourth standard, TN-3, is a relatively new IFSB standard. a technical note that provides a comprehensive view on financial inclusion from Islamic finance perspective.  In order to assist in understanding good practices in regulating the financial sector to enhance financial inclusion through Islamic finance, FAQ for TN-3 gives explanatory notes to definition of financial inclusion on Islamic finance, its specificities, its compliance with regulatory requirements and some contemporary challenges.
 
The second set of FAQs were published on 30 December 2019 for these Standards; Disclosure Requirements for Islamic Capital Market (ICM) Products (IFSB-19), Key Elements in the Supervisory Review Process of Takâful/Retakâful Undertakings (IFSB-20), Core Principles for Islamic Finance Regulation [Islamic Capital Market Segment] (IFSB-21); and Revised Standard on Disclosures to Promote Transparency and Market Discipline for IIFS [Banking Segment] (IFSB-22).
 
The IFSB welcomes enquires, suggestions and comments for improvement of the FAQs. Comments and suggestions can be sent to ifsb_sec@ifsb.org.  These FAQs are available on the IFSB website under the ‘Standards Development’ section for download.

Send us your press releases to pressrelease.zawya@refinitiv.com

© Press Release 2020

Disclaimer: The contents of this press release was provided from an external third party provider. This website is not responsible for, and does not control, such external content. This content is provided on an “as is” and “as available” basis and has not been edited in any way. Neither this website nor our affiliates guarantee the accuracy of or endorse the views or opinions expressed in this press release.

The press release is provided for informational purposes only. The content does not provide tax, legal or investment advice or opinion regarding the suitability, value or profitability of any particular security, portfolio or investment strategy. Neither this website nor our affiliates shall be liable for any errors or inaccuracies in the content, or for any actions taken by you in reliance thereon. You expressly agree that your use of the information within this article is at your sole risk.

To the fullest extent permitted by applicable law, this website, its parent company, its subsidiaries, its affiliates and the respective shareholders, directors, officers, employees, agents, advertisers, content providers and licensors will not be liable (jointly or severally) to you for any direct, indirect, consequential, special, incidental, punitive or exemplary damages, including without limitation, lost profits, lost savings and lost revenues, whether in negligence, tort, contract or any other theory of liability, even if the parties have been advised of the possibility or could have foreseen any such damages.