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| Source: AAOIFI. The Shari'ah Board. |
The Shari’ah Board of the Accounting and Auditing Organization for Islamic Financial Institutions (AAOIFI) has adopted two new shari’ah standards, bringing the total number of AAOIFI Shari’ah Standards to 57:
Shari’ah Standard No. 56 on liability of the investment manager
This standard aims to explain the shari’ah rulings on the liability of the investment manager in Islamic finance and banking products and contracts, investments, etc. The standard defines the concepts of transgression and negligence and breach of contractual stipulations on the part of the investment manager, in addition to features and consequences of such acts. The standard also sets out the shari’ah rulings pertaining to investment manager’s liability or volunteering to bear liability, as well as rulings relating to the procedures taken against the investment manager in the event of transgression or negligence, and the consequences to the investment manager if held liable.
The standard is addresses a number of important issues on the types of modern applications in various markets across the world. The featured addition to this standard is the detailed explanation on the shari’ah rulings for liability on the part of the service agent in sukuk or in syndicated financing contracts and other products.
The Shari’ah Board had taken a decision to develop this standard more than 20 months ago based on an initial study including research conducted on the topic. Thereafter, a subcommittee reviewed the draft standard and validated its shari’ah rulings in three extended meetings, and submitted the amended version of the draft standard to the Shari’ah Board. In turn, the board reviewed the draft in three meetings. The revised draft was then presented at three public hearings in Jordan, Morocco and KSA respectively, attended by scholars, experts, bankers, academicians, lawyers, judges, accountants, and experts from the Islamic finance industry and central banks and supervisory authorities. The Shari’ah Board incorporated the feedback and suggestions received from the public hearing. The standard was then submitted to the drafting committee prior to the official issuance of the final standard.
Shari’ah Standard No. 57 on gold and its trading controls
AAOIFI has approved this standard after nearly a year of efforts. This was carried out in collaboration with and support by the World Gold Council and Amanie Advisors, which also provided technical and expert guidance. The standard also underwent three public hearings held in Oman, Sudan and Malaysia respectively, attended by scholars and experts from central banks, Islamic financial institutions, as well as accountants, auditors, lawyers, academics and other prominent experts and practitioners from the gold industry.
The draft standard further took up three Shari’ah Board meetings, in presence and participation of 20 prominent scholars from 15 countries and all major schools of Islamic law (fiqh, الفقه), in order to finalise it. The standard was then submitted to the AAOIFI drafting committee for final formulation before it is published and made available to the industry, investors and other interested parties.
Shari’ah Standard No. 57 on gold and its trading controls will be included in the new edition of AAOIFI’s standards. Moreover, the standard will be separately published in digital format and made available on a complimentary basis on the websites of AAOIFI and the World Gold Council after the official launch.
Shari’ah Standard No. 56 on liability of the investment manager
This standard aims to explain the shari’ah rulings on the liability of the investment manager in Islamic finance and banking products and contracts, investments, etc. The standard defines the concepts of transgression and negligence and breach of contractual stipulations on the part of the investment manager, in addition to features and consequences of such acts. The standard also sets out the shari’ah rulings pertaining to investment manager’s liability or volunteering to bear liability, as well as rulings relating to the procedures taken against the investment manager in the event of transgression or negligence, and the consequences to the investment manager if held liable.
The standard is addresses a number of important issues on the types of modern applications in various markets across the world. The featured addition to this standard is the detailed explanation on the shari’ah rulings for liability on the part of the service agent in sukuk or in syndicated financing contracts and other products.
The Shari’ah Board had taken a decision to develop this standard more than 20 months ago based on an initial study including research conducted on the topic. Thereafter, a subcommittee reviewed the draft standard and validated its shari’ah rulings in three extended meetings, and submitted the amended version of the draft standard to the Shari’ah Board. In turn, the board reviewed the draft in three meetings. The revised draft was then presented at three public hearings in Jordan, Morocco and KSA respectively, attended by scholars, experts, bankers, academicians, lawyers, judges, accountants, and experts from the Islamic finance industry and central banks and supervisory authorities. The Shari’ah Board incorporated the feedback and suggestions received from the public hearing. The standard was then submitted to the drafting committee prior to the official issuance of the final standard.
Shari’ah Standard No. 57 on gold and its trading controls
AAOIFI has approved this standard after nearly a year of efforts. This was carried out in collaboration with and support by the World Gold Council and Amanie Advisors, which also provided technical and expert guidance. The standard also underwent three public hearings held in Oman, Sudan and Malaysia respectively, attended by scholars and experts from central banks, Islamic financial institutions, as well as accountants, auditors, lawyers, academics and other prominent experts and practitioners from the gold industry.
The draft standard further took up three Shari’ah Board meetings, in presence and participation of 20 prominent scholars from 15 countries and all major schools of Islamic law (fiqh, الفقه), in order to finalise it. The standard was then submitted to the AAOIFI drafting committee for final formulation before it is published and made available to the industry, investors and other interested parties.
Interested?
Shari’ah Standard No. 56 on liability of the investment manager and its associated shari’ah study will be made available exclusively to subscribers to the digital version of AAOIFI’s standards on AAOIFI’s website and via mobile apps.
Shari’ah Standard No. 57 on gold and its trading controls will be included in the new edition of AAOIFI’s standards. Moreover, the standard will be separately published in digital format and made available on a complimentary basis on the websites of AAOIFI and the World Gold Council after the official launch.