IFSB Publishes FAQs for Islamic Finance Standards
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.
Related Links
- 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
Featured Experts
Victor Calanog, Ph.D.
Leading economist; commercial real estate; performance forecasting, econometric infrastructure; data modeling; credit risk modeling; portfolio assessment; custom commercial real estate analysis; thought leader.
Previous Article
EIOPA Consults on KPIs on Sustainability for Non-Financial ReportingRelated Articles
ESAs Issue Multiple Regulatory Updates for Financial Sector Entities
The three European Supervisory Authorities (ESAs) issued a letter to inform about delay in the Sustainable Finance Disclosure Regulation (SFDR) mandate, along with a Call for Evidence on greenwashing practices.
FSB and NGFS Publish Initial Findings from Climate Scenario Analyses
The Financial Stability Board (FSB) and the Network for Greening the Financial System (NGFS) published a joint report that outlines the initial findings from climate scenario analyses undertaken by financial authorities to assess climate-related financial risks.
FSB Issues Reports on NBFI and Liquidity in Government Bonds
The Financial Stability Board (FSB) published a letter intended for the G20 leaders, highlighting the work that it will undertake under the Indian G20 Presidency in 2023 to strengthen resilience of the financial system.
ISSB Makes Announcements at COP27; IASB to Propose IFRS 9 Amendments
The International Sustainability Standards Board (ISSB) of the IFRS Foundations made several announcements at COP27 and with respect to its work on the sustainability standards.
IOSCO Prioritizes Green Disclosures, Greenwashing, and Carbon Markets
The International Organization for Securities Commissions (IOSCO), at COP27, outlined the regulatory priorities for sustainability disclosures, mitigation of greenwashing, and promotion of integrity in carbon markets.
EBA Finalizes Methodology for Stress Tests, Issues Other Updates
The European Banking Authority (EBA) issued a statement in the context of COP27, clarified the operationalization of intermediate EU parent undertakings (IPUs) of third-country groups
EU Finalizes Rules Under Crowdfunding Service Providers Regulation
The European Union has finalized and published, in the Official Journal of the European Union, a set of 13 Delegated and Implementing Regulations applicable to the European crowdfunding service providers.
OSFI Sets Out Work Priorities and Reporting Updates for Banks
The Office of the Superintendent of Financial Institutions (OSFI) published an annual report on its activities, a report on forward-looking work.
APRA Finalizes Changes to Capital Framework, Issues Other Updates
The Australian Prudential Regulation Authority (APRA) finalized amendments to the capital framework, announced a review of the prudential framework for groups.
BIS Hub and Central Banks Conduct CBDC and DeFI Pilots
The Bank for International Settlements (BIS) Innovation Hubs and several central banks are working together on various central bank digital currency (CBDC) pilots.
