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
The Prudential Regulation Authority (PRA) published the final policy statement PS21/21 on the leverage ratio framework in the UK. PS21/21, which sets out the final policy of both the Financial Policy Committee (FPC) and PRA
The Consumer Financial Protection Bureau (CFPB) proposed to amend Regulation B to implement changes to the Equal Credit Opportunity Act (ECOA) under Section 1071 of the Dodd-Frank Act.
The Prudential Regulation Authority (PRA) decided to maintain, at the 2019 levels, the buffer rates for the Other Systemically Important Institutions (O-SII) for another year, with no new rates to be set until December 2023.
The Financial Stability Board (FSB) published a progress report on implementation of its high-level recommendations for the regulation, supervision, and oversight of global stablecoin arrangements.
In a letter to the authorized deposit taking institutions, the Australian Prudential Regulation Authority (APRA) announced an increase in the minimum interest rate buffer it expects banks to use when assessing the serviceability of home loan applications.
The Committee on Payments and Market Infrastructures (CPMI) and the International Organization of Securities Commissions (IOSCO) are consulting on the preliminary guidance that clarifies that stablecoin arrangements should observe international standards for payment, clearing, and settlement systems.
The European Banking Authority (EBA) and the European Insurance and Occupational Pensions Authority (EIOPA) have set out their respective work priorities for 2022.
The Malta Financial Services Authority (MFSA) updated the guidelines on supervisory reporting requirements under the reporting framework 3.0, in addition to the reporting module on leverage under the common reporting (COREP) framework.
The European Commission (EC) published the Implementing Decision 2021/1753 on the equivalence of supervisory and regulatory requirements of certain third countries and territories for the purposes of the treatment of exposures, in accordance with the Capital Requirements Regulation or CRR (575/2013).
EC published the Implementing Regulation 2021/1751, which lays down implementing technical standards on uniform formats and templates for notification of determination of the impracticability of including contractual recognition of write-down and conversion powers.