Kuala Lumpur, 23rd November 2009 – In its 15th meeting in Kuala Lumpur today, the Council of the Islamic Financial Services Board (IFSB) resolved to approve three documents that aim to further facilitate efforts towards enhancing the soundness and stability of the Islamic financial services industry. The three documents are:
- Guiding Principles on Governance for Islamic Insurance (Takaful) Operations;
- Conduct of Business for Institutions offering Islamic Financial Services (IIFS); and
- Guiding Principles on Shari`ah Governance System.
The 15th Meeting of the IFSB Council was chaired by H.E. Dr. Muhammad Sulaiman Al-Jasser, Governor of the Saudi Arabian Monetary Agency, and attended by the President of the Islamic Development Bank, Central Bank’s Governors and governors’ representatives of the IFSB 21-member Council. Bank Negara Malaysia hosted both the Council Meeting and the subsequent IFSB Public Lecture on Financial Policy and Stability.
(1) Guiding Principles on Governance for Islamic Insurance (Takaful) Undertakings (IFSB-8)
IFSB-8 seeks to provide guiding principles on governance for all Takaful undertakings under each respective jurisdiction’s purview. The document has the following three main objectives; 1) reinforcing relevant good governance practices, based on those prescribed by other internationally recognised governance standards; 2) striking a balance between the interests and fair treatment of all stakeholders; and 3) providing a solid foundation for all IFSB’s future standards that relate to good governance of Takaful undertakings.
(2) Conduct of Business for Institutions offering Islamic Financial Services (IFSB-9)
IFSB-9 aims to promote a climate of confidence and a supportive environment in the business of the Islamic financial services industry by upholding and strengthening the relevant moral, social and religious values in business practices.
(3) Guiding Principles on Shari`ah Governance System (IFSB-10)
IFSB-10 aims to highlight to supervisory authorities in particular, and the industry’s other stakeholders in general, the components of a sound Shari`ah governance system, especially with regards to the competence, independence, confidentiality and consistency of Shari`ah boards.
All three documents are will be downloadable from the IFSB website in due course.