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The theme of the 12th IFSB Summit underscores the recognition that while there are significant benefits to Islamic finance from the processes of growth and international integration that is underway, there are corresponding challenges in building up the regulatory, supervisory and surveillance capabilities in order to contain vulnerability to cross border volatility and contagion. In particular, many regulatory authorities involved in the regulation and supervision of the Islamic financial services industry face challenges in identifying the applicable principles and benchmarks for assessing the gaps in their existing structures.

The Council of the Islamic Financial Services Board (IFSB) has today resolved to approve the applications of five financial institutions as Observer Members of the IFSB. The newly admitted Observer Members are: Bank Muamalat Indonesia; Mellat Investment Bank (Iran); Qatar First Bank; Turkiye Finans Katilim Bankasi; Al Masraf - Arab Bank for Investment & Foreign Trade (United Arab Emirates). The 184 members of the IFSB comprise 59 supervisory and regulatory authorities from the banking, capital markets and Islamic insurance (Takaful) sectors in 44 jurisdictions, as well as eight international inter-governmental organisations, and 117 market players.

The Islamic Financial Services Board (IFSB) has issued its Second Working Paper on the Evaluation of Core Principles Relevant to Islamic Finance Regulation. The Working Paper is issued in parallel to the Exposure Draft (ED-17) of the Standard on Core Principles for Islamic Finance Regulation (Banking Segment), and provides the background and wider context for the Standard that is under preparation by an IFSB Working Group. The Working Paper (WP) assesses in full the Core Principles issued by the Basel Committee for Banking Supervision (BCBS), the International Organization for Securities Commissions (IOSCO), as well as those issued by the International Association of Insurance Supervisors (IAIS).

In his Keynote Address at the 2014 London Sukuk Summit on 18 June, Jaseem Ahmed, Secretary-General, Islamic Financial Services Board, noted that the high growth rate of the Islamic finance industry has led to the emergence of Islamic finance sectors that have attained systemic importance in a number of key economies in Asia and the wider Gulf and Middle East. The second aspect of the global IF industry he highlighted is that rapid growth of Islamic finance is taking place in a group of nations that display wide variation in their market, institutional and policy and regulatory development. The IFSB Secretary General noted that the key priority is to find the resources and organisational modes and partnerships that help committed jurisdictions to meet the challenges they face, and wish for assistance in addressing.

The Islamic Financial Services Board (IFSB) is organising a Seminar on Islamic Finance in Kazakhstan with the theme, "Prospects and Challenges in the Development of Islamic Finance for Kazakhstan" on 16 June 2014 in Almaty, Kazakhstan. The National Bank of Kazakhstan will host the Seminar on Islamic finance as well as the IFSB Facilitating the Implementation of Standards (FIS) Workshop Series for Banking and Takaful on 17 - 19 June 2014. The one-day Seminar will cover the following topics: Islamic Finance for Central Asia: Growth with Stability - Regulatory Issues and Key Preconditions; The Role of Sukuk: Infrastructure Financing, Capital Market Instruments and High Quality Liquid Assets (HQLA); Panel Discussion on the Way forward for the Development of Islamic Finance for Kazakhstan.

A report “Mid-Term Review of the Ten-Year Framework and Strategies for Islamic Financial Services Industry (IFSI) Development” will be launched on 19 May 2014. The Mid-Term Review report is a joint initiative of the IFSB and Islamic Research and Training Institute (IRTI). Previously, in March 2007, the IFSB, IDB and IRTI had jointly developed, in consultation with a wide range of stakeholders, the IFSI Development: Ten-Year Framework and Strategies. After five years of the initial publication, a Mid-Term Review of the initiative was undertaken with the aim to assess the progress made, incorporate the new developments taking place in the global financial system and the challenges. The report will be available for download from the IFSB and IRTI websites, www.ifsb.org and www.irti.org from 19 May 2014.

The Islamic Financial Services Board (IFSB) will release a Mid-Term Review (MTR) of the industry’s 10-year framework document on May 19, outlining benchmarks to monitor industry progress in a more focused way. The original framework, released in 2007 by the IFSB and the research arm of the Jeddah-based Islamic Development Bank, identified 16 recommendations for policymakers but did not spell out detailed metrics to track their progress. The MTR, in contrast, proposes a stronger implementation plan, including concrete initiatives to be undertaken by a range of stakeholders. Furthermore, a working group to study a standard for retakaful has now been launched and another working group will soon be set up to study a standard for capital markets.

The 11th IFSB Annual Global Summit, themed "New Markets and Frontiers for Islamic Finance: Innovation and the Regulatory Perimeter", will be held in Mauritius. The session topics which reflect the importance of the Summit theme include: Global Overview of the Islamic Financial Services Industry (IFSI): Outlook and Policy Developments; Legal and Regulatory Environment of Islamic Finance; Sukuk, Market Development and Regulation, The Role of Islamic Finance in Economic Development: Promoting Financial Inclusion, Sustaining Innovation, Expanding the Regulatory Perimeter - Striking a Balance; Panel Discussion on "New and Emerging Islamic Finance Jurisdictions: Opportunities and Challenges Ahead. Global players and thought leaders from among the regulators and market players of the Islamic financial services industry have confirmed their participation.

The Islamic Financial Services Board (IFSB) successfully organised the 6th IFSB Seminar on Legal Issues in the Islamic Financial Services Industry (IFSI), themed "Innovation in Sukuk Securitisation and Islamic Hedging Instruments: Developments and Challenges" on 25 March 2014 in Brunei Darussalam. This Seminar is a part of the IFSB seminar series on legal issues in the Islamic financial services industry. Speakers shared their insights on the legal challenges faced by asset securitisation and Sukuk structuring. Moreover, discussions focused on the need for establishing international standards governing transactions of Islamic hedging instruments in order to reduce the legal uncertainty. In the last session, speakers discussed the Shari`ah governance structure and the role of Shari`ah supervisory boards in assisting the innovation and development of these evolving markets.

The Council of the Islamic Financial Services Board (IFSB) has resolved to admit Bank of Korea, the Central Bank of the Republic of Korea into the IFSB membership as an Associate Member. The 24th meeting of the IFSB Council was held on 27 March 2014 in Brunei Darussalam. It was chaired by the Managing Director, AMBD, H.E. Dato Mohd Rosli Sabtu and attended by 10 central bank governors and heads of regulatory and supervisory authorities, as well as 12 senior representatives from among the Council and Full members of the IFSB, representing 17 countries. The meeting was also attended by the President of the Islamic Development Bank.

The Council of the Islamic Financial Services Board (IFSB) has resolved to approve the adoption of a new Standard in its 24th Meeting in Brunei Darussalam on 27 March 2014. The document is IFSB-16: Revised Guidance on Key Elements in the Supervisory Review Process of Institutions Offering Islamic Financial Services (Excluding Islamic Insurance (Tak?ful) Institutions and Islamic Collective Investment Schemes). The overall aim of the revised Standard is to update the earlier standard on this subject (IFSB-5). IFSB-16, which is broadly analogous to Pillar 2 of the Basel Accords, is about the supervisory process and how regulatory and supervisory authorities should supervise some specific areas pertinent to the IIFS. The softcopy of IFSB-16 will be available on the IFSB website, www.ifsb.org in due course.

The Islamic Financial Services Board (IFSB) successfully organised four events in Khartoum, Sudan on 18 - 20 February 2014. The Insurance Supervisory Authority of Sudan hosted the 6th Seminar on the Regulation of Takaful and the Facilitating the Implementation of the IFSB Standards (FIS) on Takaful while the Central Bank of Sudan (CBoS) was the host for the IFSB Meet the Members Session and the FIS Workshops on Banking. In addition, two workshops were held in Khartoum: the Facilitating the Implementation of the IFSB Standards (FIS) Workshops on Banking and the FIS Workshop on Takaful.

The theme for this 2014 Summit is New Markets and Frontiers for Islamic Finance: Innovation and the Regulatory Perimeter.

Please refer to http://www.ifsb.org/preess_full.php?id=240&submit=more for the announcement of the 11th IFSB Summit.

For any queries regarding the Summit, please contact the secretariat:

- Participants' registration

Ms. Yazmin Aziz at yazmin@ifsb.org

Mrs. Ida Shafinaz Ab. Malek at ida.shafinaz@ifsb.org

- Sponsorship and Media

Ms. Rosmawatie Abdul Halim at rosmawatie@ifsb.org

The Islamic Financial Services Board (IFSB) has published new guidelines on capital adequacy for Islamic banks and risk management of takaful. The introduction of Basel III standards, which will be phased in over the coming years, has led to the new guidance. Revised guidelines detail the criteria for using sukuk as Tier 1 and Tier 2 regulatory capital, a practice that has been in operation this year in financial institutions in the United Arab Emirates and Turkey. Guidelines for takaful firms outline issues faced by Islamic insurers, including the risk that their products become non-compliant with sharia principles, and lays out best practice when it comes to supervising funds and disclosing information.

The Kuala Lumpur-based Islamic Financial Services Board (IFSB) has published guidelines on capital adequacy for Islamic banks and risk management of takaful as the industry body expands its activity and membership base. Revised guidelines detail criteria for using sukuk as Tier 1 and Tier 2 regulatory capital, those for takaful firms outline issues faced by Islamic insurers, including the risk that their products become non-compliant with Shariah principles, and describe best practices to supervise their funds and disclose information. Work now shifts to the IFSB’s 16th guideline covering the supervision of Islamic finance institutions, helping tighten regulatory oversight of industry practices. The IFSB council will be chaired in 2014 by the managing director of Brunei’s monetary authority, taking over duties from the Qatar’s central bank governor.

The Islamic Financial Services Board (IFSB) and the Asian Development Bank (ADB) will jointly organise a Conference on Islamic Finance for Asia: Development, Prospects and Inclusive Growth and a Roundtable Session for Regulators on 4 - 5 November 2013 in Manila, Philippines. The Conference will explore issues related to further developing Islamic finance, its current state of progress and challenges, while also seeking to create greater opportunities for interaction and cooperation. The Roundtable Session for Regulators will be organised with the aim to provide a unique opportunity for regulators to discuss and share their experiences, issues and challenges. Interested participants are welcome to register their attendance to the Conference at www.ifsb.org.

The Islamic Financial Services Board (IFSB) and Bangladesh Bank has successfully organised a "Seminar on Prospects and Challenges in the Development of Islamic Finance for Bangladesh" on 23 and 24 September 2013 in Dhaka. The seminar aimed to create greater awareness on the latest developments on the Islamic financial services industry, and to discuss the issues in further augmenting its role in Bangladesh. The meeting consisted of five sessions where recent developments in the Islamic capital market, regulatory frameworks, microfinance among others were discussed. At the end of the one and a half day seminar, IFSB assured Bangladesh Bank of its constant support for the various initiatives to strengthen the Islamic finance in its member countries.

The Islamic Financial Services Board (IFSB) is organising its first Seminar focusing on the Islamic financial services in Africa which will be held on 6 to 7 September in Mauritius, hosted by the Bank of Mauritius. This Seminar is targeted at regulatory authorities and financial institutions from African nations interested in developing or exploring Islamic Finance. Numerous experts of Islamic finance will participate. The IFSB is also organising a Pre Seminar Workshop on Introduction to Islamic Finance and the IFSB Standards on 5 September 2012, prior to the Seminar, which is open to all participants attending the Seminar. The Workshop aims to provide them with a better understanding of Islamic financial services and the IFSB activities.

The Seminar on Strategies for the Development of Islamic Capital Markets was held on June 27 in Hong Kong to promote discussions, understanding and experience-sharing in the area of Islamic capital markets. The event was organised by the Islamic Financial Services Board (IFSB) and hosted by the Hong Kong Monetary Authority (HKMA). In the one-day seminar, speakers with experience and expertise in the Islamic finance field discussed the latest developments of the global Islamic capital markets and examined the prospects and opportunities, with particular focus on Sukuk and Islamic collective investment schemes. The seminar was attended by more than 80 delegates including representatives from regulatory authorities, policy-makers, financial institutions, market professionals and legal practitioners from Hong Kong and different parts of the world including the Middle East, Asia, Africa and Europe.

The Islamic Development Bank (IDB) has called for the creation of a global sharia advisory board that can offer greater uniformity for the Islamic finance industry. A centralised format to the supervision of sharia-compliant banking products is gaining favour across the globe, as regulators seek to standardise industry practices and improve consumer perceptions. IDB president Ahmad Mohamed Ali said that IDB and IFSB (Islamic Financial Services Board) should study ways for creating globally acceptable references for the industry. This could include striving for the concept of a globally accepted sharia committee or body, which would be able to assist all Islamic financial institutions and bring them in line with a uniform standard. A global sharia board would also allow the industry to address low penetration rates in majority Muslim countries.