IFSB issued three Exposure Drafts covering standards in Islamic banking, Islamic capital markets, and Islamic insurance (takāful) sectors. The Exposure Draft ED-22 is on the revised standard on disclosures to promote transparency and market discipline for institutions offering Islamic financial services in the banking sector. ED-21 is on the core principles for Islamic finance regulation in the Islamic capital markets segment. In the insurance sector, IFSB is consulting on ED-20, which addresses key elements in the supervisory review process of takāful/retakāful Undertakings. The consultations end on May 28, 2018.
IFSB invited comments from regulatory and supervisory authorities, international organizations, institutions offering Islamic financial services, academics, and interested members of the public. The following are the key objectives of these Exposure Drafts:
- ED-22 is a revision of IFSB-4 on Disclosures to Promote Transparency and Market Discipline for Institutions offering Islamic Financial Services in the banking sector, which was issued in 2007. It brings IFSB-4 in line with the updated framework for Pillar 3 on disclosure requirements, which was issued by BCBS in January 2015 and March 2017.
- ED-21 is intended to provide a set of core principles for the regulation and supervision of the Islamic capital market, taking into consideration the specificities of Islamic finance, while complementing the existing international standards, principally the IOSCO Objectives and Principles of Securities Regulation and its Methodology (May 2017).
- ED-20 provides guidance on the implementation of common approaches to the supervision of the takāful/retakāful industry, while addressing the specificities of the takāful/retakāful undertakings. The aim is to promote the international harmonization of supervision while enhancing cooperation among supervisors.
Comment Due Date: May 28, 2018
Keywords: International, Banking, Insurance, Securities, Islamic Financial Services Industry, ED 20, ED 21, ED 22, Islamic Banking, IFSB