Featured Product

    IFSB Council Adopts IFSB-20, IFSB-21, and IFSB-22

    December 06, 2018

    The IFSB Council resolved to approve the adoption of three new standards at its 33rd meeting in Jeddah, the Kingdom of Saudi Arabia. The three new standards include key elements in the supervisory review process of Takāful/Retakāful Undertakings (IFSB-20), core principles for Islamic Finance Regulation (IFSB-21), and revised standard on disclosures to promote transparency and market discipline for Institutions Offering Islamic Financial Services, or IIFS (IFSB-22).

    IFSB-22. This standard updates IFSB-4, the previous standard on disclosures for the banking segment, in line with the publications issued by BCBS related to Pillar 3 disclosure requirements. IFSB-22 specifies a set of key principles and practices to be followed by Islamic banks in making disclosures and aims to promote consistency and comparability of disclosures by introducing harmonized templates for disclosure of quantitative information in key areas, including capital adequacy, regulatory risk exposures, investment accounts, and Sharīʻah governance. Disclosure requirements set out in IFSB-22 have been designed to enable market participants, especially the investment account holders, to assess key information on the type of IIFS and the scope of the consolidation method used by members of an Islamic financial group; capital structure and overview of capital adequacy; linkages between accounting and regulatory scopes of consolidation; the risk management process; and key aspects of general governance and Sharīʻah governance. Such disclosures, when combined with adequate market and legal infrastructures, can improve consumer protection practices among IIFS and enable market forces to enhance the stability and soundness of Islamic finance and reinforce other IFSB standards.

    IFSB-21. This standard sets out 38 high-level core principles and their associated assessment methodology, which describes a broad, general framework for the regulation of Islamic capital markets. The core principles in the new standard take into consideration the specificities of Islamic finance, while complementing the existing international standards, principally "Objectives and Principles of Securities Regulation and its Methodology," which were issued by IOSCO in May 2017. IFSB envisages that IFSB-21 will be used by jurisdictions as a benchmark for assessing the quality of their regulatory and supervisory systems and for identifying the future work to achieve a baseline level of sound regulations and practices for Islamic capital markets products and services. 

    IFSB-20. This standard is intended to guide the firm-level supervision of Takāful/Retakāful Undertakings by providing guidance on the implementation of common approaches to the supervision of the takāful and retakāful industry, while addressing the specificities of these institutions. This is to protect the interests of the contracting parties in Takāful/Retakāful Undertakings and the long-term stability of the takāful system. The standard describes the key elements of supervisory review process that constitute seven essential elements for supervision of Takāful/Retakāful Undertakings. These elements present a clear overview of issues in the supervision of takāful and retakāful sector in an integrated form.

     

    Related Links

    Keywords: International, Banking, Securities, Insurance, IFSB-20, IFSB-21, IFSB-22, Islamic Banking, Islamic Finance, Pillar 3, IFSB

    Featured Experts
    Related Articles
    News

    HKMA Announces Liquidity Measures in Response to COVID-19 Outbreak

    HKMA issued a circular on liquidity measures that HKMA has taken or plans to take in response to COVID-19 outbreak.

    April 03, 2020 WebPage Regulatory News
    News

    BaFin Lowers Countercyclical Capital Buffer Amid COVID-19 Outbreak

    BaFin published a general order to lower the countercyclical capital buffer (CCyB) from 0.25% to 0% as of April 01, 2020.

    April 03, 2020 WebPage Regulatory News
    News

    ESMA Updates Risk Assessment in Light of COVID-19

    ESMA updated its risk assessment to account for the impact of the COVID-19 pandemic.

    April 02, 2020 WebPage Regulatory News
    News

    FSB Outlines and Reprioritizes Its Work to Address COVID-19 Risks

    FSB published a statement that outlines its work toward addressing the financial stability risks posed by COVID-19, along with the reprioritization of its work program for 2020.

    April 02, 2020 WebPage Regulatory News
    News

    EIOPA Announces Measures to Address the Impact of COVID-19

    Due to the outbreak of COVID-19, EIOPA is re-prioritizing and alleviating the burden by extending the deadlines or delaying projects where input from national competent authorities and/or industry is foreseen.

    April 02, 2020 WebPage Regulatory News
    News

    EBA Guidelines on Use of Payment Moratoria to Address Liquidity Issues

    EBA published detailed guidance on the treatment of legislative and non-legislative moratoria on loan repayments to be applied before June 30, 2020, in light of the COVID-19 crisis.

    April 02, 2020 WebPage Regulatory News
    News

    PRA Outlines Approach to Reporting and Disclosures Amid COVID-19

    PRA published a statement to outline its approach to regulatory reporting and Pillar 3 disclosures for UK banks, building societies, designated investment firms, and credit unions.

    April 02, 2020 WebPage Regulatory News
    News

    PRA Finalizes Certain Modeling Issues for Solvency II Internal Models

    PRA published a statement (PS9/20) that sets out the final policy on modeling of income-producing real estate loans and internal credit assessment for illiquid, unrated assets within the Solvency II internal models.

    April 02, 2020 WebPage Regulatory News
    News

    EIOPA Issues Statement on Mitigating Impact of COVID-19 Outbreak

    EIOPA issued a statement to insurers and intermediaries, urging them to take steps to mitigate the impact of COVID-19 on consumers.

    April 01, 2020 WebPage Regulatory News
    News

    APRA on Changes to Reporting Obligations for Banks Due to COVID-19

    APRA, in collaboration with the Reserve Bank of Australia (RBA) and the Australian Bureau of Statistics (ABS), published a letter outlining temporary changes in reporting obligations for authorized deposit-taking institutions and registered financial corporations, in response to COVID-19.

    April 01, 2020 WebPage Regulatory News
    RESULTS 1 - 10 OF 4936