3. In advancing this mission, the IFSB promotes the development o… 2.Not to be aware of the rules of Islamic transactions by all employees of Islamic finance institutions. Financial Services Board Act, 1990 (Act No. This content is provided on an “as is” and “as available” basis and has not been edited in any way. He has presented many papers related to Islamic Banking and Finance and other Fiqh topics at national and International level and has conducted many training sessions particullarly on Islamic Banking and Finance for different sectors since 1999. Clarity of Islamic finance legal documents is very important so as to ensure that no disputes arise between the parties and that the terms and conditions of the contract will be honoured. The instruments selected for investment by the Fund Manager are approved and monitored by the Shariah Advisory Board of the Fund as Shariah compliant. LAWS & RULES Legal Framework. Secondly, ensure that the decisions of the Shari’ah boards are understood by the practitioners so that they will be properly implemented, as they are the ones responsible for applying the decisions of the Shari’ah boards. Such gap is dangerous, as it will leave the Shari’ah board to work in isolation without the support of various parties, and the industry shall not have clear aim or direction. *҈(9���T(x�ٝSD�j���,PߒWWX���A�M��R�0���o�B����&!��\��$4��e] The views of the Shari`ah advisors shall be binding in the specific area of supervision.[3]. Therefore, upon acceptance of the appointment, Shari’ah scholars must endeavor to perform their duties with due care and diligence and keep in mind that they are accountable to Allah and the other stakeholders involved. [6], In addition, Shari’ah scholars must also assess the economic implications of the product to the Ummah. As listed above, there are many challenges faced by Shari’ah scholars in fulfilling their real and noble task of serving Islam, the Ummah and the industry. 0000014167 00000 n Thus, Shari’ah scholars need to learn and have sufficient understanding of legal jargon or, if they don’t, to seek assistance in reading those documents and only approve them after being satisfied that they are in line with Shari’ah requirements and clearly describe the transaction that ought to take place. Prof. Dr. Mohamad Akram Laldin is currently the Executive Director of International Prior to joining ISRA he was an Assistant Professor at the Kulliyah of Islamic Revealed Knowledge and Human Sciences, International Islamic University, Malaysia (IIUM). The institution’s article of association or the Shari’ah board’s appointment letter should explicitly state that all of its policies have to be Islamic and Shari’ah compliant and, thus, the Shari’ah scholar or Shari’ah board needs to be engaged to ensure that such objectives are achieved. Welcome to the website of the Financial Conduct Authority’s Handbook of rules and guidance. In addition, Shari’ah scholars should be involved in laying the foundation stone of an institution and advise the institution on many aspects including the policies and rules of the institution in order to make them Shariah compliant and be of an Islamic mould. For instance, retail products must not be neglected, although wholesale products may yield more profits. //