Featured Product

    IFSB Consults on Disclosures Standard for Islamic Insurance Entities

    March 25, 2020

    IFSB published an exposure draft (ED-25) for a standard on disclosures for Takāful/Retakāful undertakings (ED-25). The comment period for this exposure draft ends on May 25, 2020. The proposed disclosures standard covers both public and private disclosures for takāful/retakāful operators. IFSB is inviting comments from regulatory and supervisory authorities, international organizations, institutions offering Islamic financial services, academics, and other interested parties.

    The exposure draft addresses the key disclosures that should be made public by takāful/retakāful operators with a view to market discipline. These disclosures are prudential and aim to ensure the soundness and stability of the industry. Public disclosures about environmental, social, and governance (ESG) issues operate in a broadly similar way and, in governance particularly, overlap with the prudential disclosures. The second area involves disclosures to participants and potential participants about the contract they are considering entering. The main objectives of the proposed disclosures standard are to: 

    • Facilitate access to relevant, reliable, and timely information by takāful market players and market participants, thus enhancing their capacity to monitor and assess the performance of takāful undertakings
    • Improve comparability and consistency of all disclosures made by takāful operators
    • Support financial consumer protection for current and potential participants by helping takāful operators to offer useful information disclosures on takāful products
    • Enable market players to complement and support, through their actions in the market, the implementation of IFSB standards.

    To encourage consistency in implementation of IFSB standards across jurisdictions, IFSB recommends that regulatory and supervisory authorities implement the standard in their jurisdictions effective from January 2023 onward, taking into account an adequate pre-implementation period starting from the issuance date of this standard for the standard to be embedded into national regulations and guidelines and, where applicable, implemented into supervisory practices. The level of implementation of the standard in a particular jurisdiction may be dependent upon, and be without prejudice to, the general legal framework of that jurisdiction. The regulatory and supervisory authorities are encouraged to implement the standard earlier than this date where they are able to do so.

    IFSB, in line with its mandate, works to complement the prudential and supervisory standards issued IAIS by addressing the specificities of takāful with the aim of contributing to the soundness and stability of the Islamic financial system, particularly the takāful industry. This standard responds to one of the recommendations made in the paper titled “Issues in Regulation and Supervision of Takāful (Islamic Insurance),” which was published by a Joint Working Group of IFSB and IAIS.

     

    Related Links

    Comment Due Date: May 25, 2020

    Keywords: International, Insurance, ESG, Islamic Insurance, Takaful Operators, Disclosures, IFSB

    Related Articles
    News

    BIS Paper Studies Impact of Fintech Lending on Small Businesses in US

    The Bank for International Settlements (BIS) published a paper that studies impact of fintech lending on credit access for small businesses in U.S.

    September 26, 2022 WebPage Regulatory News
    News

    UK Regulators Issue CRR Changes and Stress Test Scenarios for Banks

    The Prudential Regulation Authority (PRA) issued the policy statement PS8/22 to amend the Own Funds and Eligible Liabilities (CRR) Part of the PRA Rulebook and update the supervisory statement SS7/13 titled "Definition of capital (CRR firms).

    September 26, 2022 WebPage Regulatory News
    News

    EBA Launches EU-Wide Transparency Exercise in 2022

    The European Banking Authority (EBA) launched the EU-wide transparency exercise for 2022, with results of the exercise expected to be published at the beginning of December, along with the annual Risk Assessment Report.

    September 23, 2022 WebPage Regulatory News
    News

    SRB on CRR Quick-Fix to Policy for Multiple Point of Entry Banks

    The Single Resolution Board (SRB) welcomed the adoption of the review of the Capital Requirements Regulation, or CRR, also known as the "CRR quick-fix."

    September 22, 2022 WebPage Regulatory News
    News

    EC Rule Lists Advanced Economies for Market Risk Capital Calculations

    The European Commission (EC) recently adopted the Delegated Regulation 2022/1622, which sets out the regulatory technical standards to specify the countries that constitute advanced economies for the purpose of specifying risk-weights for the sensitivities to equity.

    September 21, 2022 WebPage Regulatory News
    News

    EBA Publishes Final Regulatory Standards on STS Securitizations

    The European Banking Authority (EBA) published the final draft regulatory technical standards specifying and, where relevant, calibrating the minimum performance-related triggers for simple.

    September 20, 2022 WebPage Regulatory News
    News

    ECB Further Reviews Costs and Benefits Associated with IReF

    The European Central Bank (ECB) is undertaking the integrated reporting framework (IReF) project to integrate statistical requirements for banks into a standardized reporting framework that would be applicable across the euro area and adopted by authorities in other EU member states.

    September 15, 2022 WebPage Regulatory News
    News

    EBA Publishes Funding Plans Report, Receives EMAS Certification

    The European Banking Authority (EBA) has been awarded the top European Standard for its environmental performance under the European Eco-Management and Audit Scheme (EMAS).

    September 15, 2022 WebPage Regulatory News
    News

    MAS Launches SaaS Solution to Simplify Listed Entity ESG Disclosures

    The Monetary Authority of Singapore (MAS) set out the Financial Services Industry Transformation Map 2025 and, in collaboration with the SGX Group, launched ESGenome.

    September 15, 2022 WebPage Regulatory News
    News

    BCBS to Finalize Crypto Rules by End-2022; US to Propose Basel 3 Rules

    The Basel Committee on Banking Supervision met, shortly after a gathering of the Group of Central Bank Governors and Heads of Supervision (GHOS), the oversight body of BCBS.

    September 15, 2022 WebPage Regulatory News
    RESULTS 1 - 10 OF 8521