IFSB published a set of frequently asked questions (FAQs) that provide additional guidance on four IFSB standards. These standards are IFSB-3 on guiding principles on corporate governance for institutions offering only Islamic financial services, IFSB-6 on guiding principles on governance for Islamic Collective Investment Schemes (ICIS), IFSB-14 on risk management for Takāful (insurance) undertakings, and a relatively new IFSB standard TN-3 on technical note on financial inclusion and Islamic finance. The FAQs present clarifications and explanative directions on the standards.
The FAQs for IFSB-3 explains, among other things, the main principles on establishing a comprehensive governance policy framework for institutions offering Islamic financial services, provides insights on best practices for the governance committee in the institutions offering Islamic financial services and managing investment account holders. The FAQs for IFSB-14 are developed to address the risks specific to Takāful and Sharī`ah specificities in risk management process for takāful undertakings as well as the key elements of the supervisory review process are also covered. The FAQs for TN-3 gives explanatory notes to definition of financial inclusion on Islamic finance, its specificities, its compliance with regulatory requirements and some contemporary challenges.
IFSB announced holding an Innovation Forum on digital transformation of Islamic finance and other innovative solutions for post-COVID-19 recovery on November 30, 2020. The key topics of the discussion include sustainable Sukūk to Aid COVID-19 recovery and “Sovereign Green Sukūk and Cash Awqaf Linked Sukūk issuance.” In addition, IFSB announced conducting Islamic Financial Stability Forum on December 16, 2020 to discuss the implications of COVID-19 to the stability of Islamic financial services industry.
- Press Release on FAQs
- FAQs on IFSB Standards
- Press Release on Innovation Forum
- Press Release on Islamic Financial Stability Forum
Keywords: International, Banking, Insurance, Securities, FAQ, Governance, ESG, Collective Investment Schemes, Islamic Finance, COVID-19, IFSB
Leading economist; commercial real estate; performance forecasting, econometric infrastructure; data modeling; credit risk modeling; portfolio assessment; custom commercial real estate analysis; thought leader.
Previous ArticleEIOPA Consults on KPIs on Sustainability for Non-Financial Reporting
EU published Directive 2021/338, which amends the Markets in Financial Instruments Directive (MiFID) II and the Capital Requirements Directives (CRD 4 and 5) to facilitate recovery from the COVID-19 crisis.
The Standing Committee of the European Free Trade Association (EFTA) recommended that a systemic risk buffer level of 4.5% for domestic exposures can be considered appropriate for addressing the identified systemic risks to the stability of the financial system in Norway.
In a recent statement, PRA clarified its approach to the application of certain EU regulatory technical standards and EBA guidelines on standardized and internal ratings-based approaches to credit risk, following the end of the Brexit transition.
In a recently published letter addressed to the G20 finance ministers and central bank governors, the FSB Chair Randal K. Quarles has set out the key FSB priorities for 2021.
EU published, in the Official Journal of the European Union, a corrigendum to the revised Capital Requirements Regulation (CRR2 or Regulation 2019/876).
ESAs published a joint supervisory statement on the effective and consistent application and on national supervision of the regulation on sustainability-related disclosures in the financial services sector (SFDR).
EC published a public consultation on the review of crisis management and deposit insurance frameworks in EU.
HKMA announced that enhancements will be made to the Special 100% Loan Guarantee of the SME Financing Guarantee Scheme (SFGS) and the application period will be extended to December 31, 2021.
EBA launched consultations on the regulatory and implementing technical standards on cooperation and information exchange between competent authorities involved in prudential supervision of investment firms.
BoE issued a letter to the CEOs of eight major UK banks that are in scope of the first Resolvability Assessment Framework (RAF) reporting and disclosure cycle.