IslamicFinance.de

A global body for Islamic finance has issued a draft standard on centralized sharia boards, aiming to improve corporate governance in the industry. The proposed rules come at a time when Islamic banks are trying to widen their appeal in the Middle East and Southeast Asia, while opening up entirely new markets in Africa. The Accounting and Auditing Organisation for Islamic Financial Institutions (AAOIFI) is seeking industry feedback on the proposed standard until the end of February. AAOIFI said the standard would encourage convergence of industry practices by avoiding contradictory rulings and fostering consistency across products and services. While the standard does not prescribe term limits for scholars, it does require sharia boards to implement a rotation policy for its members while including members with expertise in areas such as accounting and law.