Harmonisation and Regulatory Consolidation of Islamic Finance

Recent efforts aimed at regulatory consolidations and setting standards have given due recognition to the economic constraints and legal uncertainties arising from the imposition of Islamic jurisprudence.

They have also addressed the relative lack of uniformity in market practices. In view of these developments, it is possible that market inefficiencies arising from different interpretations of Shariah compliance will diminish in the near future.

The leading regulatory bodies in Islamic finance such as the Accounting and Auditing Organization of Islamic Finance Institutions (AAOIFI), the General Council for Islamic Banking and Finance Institutions (GCIBFI), the Islamic International Rating Agency (IIRA), the Islamic Financial Services Board (IFSB) and the Figh Academy in Jeddah have all been working towards aligning Shariah principles towards a consistent basis.

A fine balance needs to be drawn between regulatory revisions and collective initiatives to ensure that standardisation does not stifle financial innovation. Responding to efforts by professional organisations seeking greater uniformity, an IFSB task force is due to publish recommendations for standard sukuk structures later this year.

source : islam online

Sri Lanka lawyers, accountants promote Islamic finance

Sri Lanka lawyers, accountants promote Islamic finance
Mar 19, 2011 (LBO) – Top organizations representing Sri Lanka’s lawyers and accountants have brought together experts in Islamic finance to broaden understanding of one of the faster growing niches in the financial sector.
The Chartered Institute of Management Accountants (CIMA) Sri Lanka Division and the Bar Association of Sri Lanka (BASL) said they are hosting program on Islamic Finance and Banking on March 28.
“Islamic finance has become one of the world’s fastest growing financial sectors as investors show an increasing appetite for a variety of Islamic financial instruments,” organizers said in a statement.

“The growth in Islamic finance in recent years has been driven by renewed awareness of faith based concepts and the internationalisation of the financial markets.”

Islamic finance is compliant with Shariah or Islamic law which prohibits charging of interest, speculating with derivatives or options or investing in firms that produce pork or pornography.

The program will introduce the concept deal with equity investments, accounting for Islamic finance, corporate governance, the regulatory framework, legal and tax issues.
Among the speakers would be, M A M Shukri, director, Naleemiah Institute of Islamic Studies; Faizal Salieh, managing director, Amana Investments Limiteda and Ishrat Rauff, managing director, Adl Capital Limited.

Also in the program are Reyaz Mihular, Partner, KPMG Ford RhodesThornton & Co.; Suresh R I Perera, principal -tax and regulatory, KPMG Ford Rhodes Thornton & Co; Yvette Fernando, director bank supervision, Central Bank and Javed Mansoor, Attorney-at-Law.

source : lbo sri lanka