The fourth quarter of 2016 saw proposals published by AAOIFI for standards on central sharia boards as well as new governance rules for Islamic banks in Kuwait and the Federal Territory of Labuan. The quarter also saw the IFSB issue a technical note on stress testing for institutions offering Islamic financial services. The proposed AAOIFI standard on central sharia boards is intended to provide guidance for strengthening corporate governance and thereby increase the consumer appeal of sharia-compliant financial products. It covers several aspects such as the appointment, composition and dismissal of board members, tenure of the board, functions of the central sharia board, responsibilities of the appointing authority, fit and proper criteria, and independence.
The Accounting and Auditing Organization for Islamic Financial Institutions (AAOIFI) has approved the draft of the governance standard on central Shari’ah boards. The proposed standard covers several key aspects such as the appointment, composition and dismissal of the board members; tenure of the board; functions of a central Shari'ah board; responsibilities of the appointing authority; fit and proper criteria and independence. The draft is expected to be issued by beginning of 2017 and will be posted on the AAOIFI website. The AAOIFI board also discussed progress on projects being carried forward into 2017, including the Internal Shari’ah Audit, Shari’ah Compliance and Fiduciary Rating, and Comprehensive Ethics projects. The next meeting is proposed to be held by March 2017, in Oman.
Organised jointly by the Accounting and Auditing Organization for Islamic Financial Institutions (AAOIFI), the Central Bank of Bahrain (CBB) and the World Bank Group, the 11th AAOIFI-World Bank Conference has started on Monday. CBB Governor Rasheed Al Maraj said in his keynote address that the CBB would introduce a set of new regulations for the Islamic Financial Industry. He added that the industry also needs to invest in the training of the human capital in addition to working on succession planning. Participants discussed the challenges, opportunities and development of Islamic finance in the changing economic climate. The main take away of the day was about the future prospects, innovation, differentiation between the capitalism and the Islamic finance as a whole.
Accounting and Auditing Organization for Islamic Financial Institutions (AAOIFI) holds on 4 May 2016 its International Conference, marking its 25th anniversary. Dr. Hamed Hassan Merah, Secretary General of AAOIFI said time is proper to revisit the 40 years history of the Islamic finance industry to evaluate its experience and contemplate the way forward.
Conference program of the upcoming AAOIFI event.
The Shari'ah Board of the Accounting and Auditing Organization for Islamic Financial Institutions (AAOIFI), in view of the increased use of Sukuk worldwide, the public interest in them, and the observations and questions raised about them, analyzed the subject of the issuance of Sukuk in three sessions.
The results were the following:
1. Sukuk, to be tradable, must be owned by Sukuk holders, with all rights and obligations of ownership, in real assets, whether tangible, usufructs or services, capable of being owned and sold legally as well as in accordance with the rules of Shari'ah.
2. Sukuk, to be tradable, must not symbolize receivables or debts, except in the case of a trading or financial entity selling all its assets, or a portfolio with a standing financial obligation, in which some debts, incidental to physical assets or usufruct, were included unintentionally.
3. It is not permissible for the Manager of Sukuk to undertake to offer loans to Sukuk holders, when actual earnings fall short of expected earnings.
The AAOIFI - World Bank Annual Conference on Islamic Banking and Finance will be co-hosted by AAOIFI and the World Bank. The conference will take place on 23 and 24 October 2011 in Bahrain Conference Centre, Manama, Kingdom of Bahrain.
At the conference the main subjects will be: pertinent topics for the international Islamic finance industry including inevitability of existence of Shari'a Supervisory Board in Islamic financial institutions, challenges in applying conventional international accounting standards, challenges in implementing Basel III capital adequacy standard, distribution of Islamic insurance surplus, potential of Islamic finance to promote international trade, and potential of real estate investment trusts in Islamic finance.
Bahrain has inovated the modern Islamic finance industry in the region, as its history on Islamic finance goes back to more than 40 years.
Khalid Hamad, Executive Director of Banking Supervision at the Central Bank of Bahrain (CBB), that their was to introduce new concepts and to formulate rules and standards for Shariah-compliant financial transactions.
Khalid Hamad, while commenting on the AAOIFI Annual Shariah Conference which opens on Monday in Bahrain, undelined the fact that the CBB has always been supporting AAOIFI and its conference as part of its commitment to the industry.
Educational courses on Islamic economy are going to be eld by the Accounting and Auditing Organization for Islamic Financial Institutions (AAOIFI) in Paris, France. The participants will become familiar with Islamic Shari’a in economic fields.
Westlaw Business, part of Thomson Reuters, and the Accounting and Auditing Organization for Islamic Financial Institutions (AAOIFI) today announced their agreement to provide current standards and other Islamic finance industry information for global business law professionals within the Westlaw Business Islamic Finance Centre. Please check the full news at the link provided.