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

    EBA Publishes Phase 2 of Technical Package on Reporting Framework 2.10

    EBA published phase 2 of the technical package on the reporting framework 2.10, providing the technical tools and specifications for implementation of EBA reporting requirements.

    July 10, 2020 WebPage Regulatory News
    News

    FASB Proposes to Delay Implementation of Insurance Contracts Standard

    FASB issued a proposed Accounting Standards Update that would grant insurance companies, adversely affected by the COVID-19 pandemic, an additional year to implement the Accounting Standards Update No. 2018-12 on targeted improvements to accounting for long-duration insurance contracts, or LDTI (Topic 944).

    July 09, 2020 WebPage Regulatory News
    News

    APRA Updates Regulatory Approach to Loan Deferrals Amid COVID Crisis

    APRA updated the regulatory approach for loans subject to repayment deferrals amid the COVID-19 crisis.

    July 09, 2020 WebPage Regulatory News
    News

    BCBS and FSB Set Out Recommendations for Benchmark Transition

    BCBS and FSB published a report on supervisory issues associated with benchmark transition.

    July 09, 2020 WebPage Regulatory News
    News

    IAIS Sets Out Recommendations for Benchmark Transition for Insurers

    IAIS published a report on supervisory issues associated with benchmark transition from an insurance perspective.

    July 09, 2020 WebPage Regulatory News
    News

    ESMA Updates Reporting Manual on European Single Electronic Format

    ESMA updated the reporting manual on the European Single Electronic Format (ESEF).

    July 09, 2020 WebPage Regulatory News
    News

    EBA Calls on Resolution Authorities to Consider Impact of COVID Crisis

    EBA published a statement on resolution planning in light of the COVID-19 pandemic.

    July 09, 2020 WebPage Regulatory News
    News

    BCBS Finalizes Revisions to Credit Valuation Adjustment Risk Framework

    BCBS Finalizes Revisions to Credit Valuation Adjustment Risk Framework

    July 08, 2020 WebPage Regulatory News
    News

    ECB Guideline on Materiality Threshold for Credit Obligations Past Due

    ECB published a guideline (2020/97), in the Official Journal of European Union, on the definition of materiality threshold for credit obligations past due for less significant institutions.

    July 08, 2020 WebPage Regulatory News
    News

    FED Temporarily Revises FR Y-14 With Respect to PPP and CARES Act

    FED temporarily revised the capital assessments and stress testing reports (FR Y-14A/Q/M) to implement the changes in response to the COVID-19 pandemic.

    July 08, 2020 WebPage Regulatory News
    RESULTS 1 - 10 OF 5458