Scrutinizing the Malaysian regulatory framework on Shari’ah advisors for Islamic financial institutions
Islamic banking, takaful and Islamic Capital Market are the main component of Islamic financial system in Malaysia. Shari’ah compliance is one of the attributes to distinguish Islamic Financial Institutions (IFIs) from its counterpart. Adherence to Shari’ah principles is fundamental to the operati...
| Main Authors: | , |
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| Format: | Article |
| Language: | English |
| Published: |
IIUM Institute of Islamic Banking and Finance
2013
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| Subjects: | |
| Online Access: | http://irep.iium.edu.my/36289/ http://irep.iium.edu.my/36289/ http://irep.iium.edu.my/36289/1/Framework_for_Shariah_Advisor-Journal_of_Islamic_Finance%2C_IIUM_IIiBF.pdf |
| Summary: | Islamic banking, takaful and Islamic Capital Market are the main component of Islamic financial system in Malaysia.
Shari’ah compliance is one of the attributes to distinguish Islamic Financial Institutions (IFIs) from its counterpart.
Adherence to Shari’ah principles is fundamental to the operations of IFIs and such adherence is a continuing process
as long as such institutions operate. The Shari’ah Advisors appointed by the IFIs are responsible in ensuring the
Shari’ah compliance of IFIs in carrying out its Islamic financial business. The requirement for the appointment of
Shari’ah Advisors in IFIs has been included in the statutes governing IFIs as well as guidelines and circulars issued
by authoritative bodies related to Islamic banking, takaful and Islamic Capital Market. This indicates that, the
appointment of Shari’ah Advisors in IFIs is a vital to the industry. A specific regulatory framework on Shari’ah
Advisors is essential in regulating their duties and responsibilities as may be in ensuring that the operations of IFIs
conform to Shari’ah principles. Furthermore, a strong regulatory framework on Shari’ah Advisors is one of the
factors in ensuring the resilience development of Islamic finance industry. Henceforth, this study seeks to analyze the
Malaysian regulatory framework on Shari’ah advisors as their significant roles and responsibilities in ensuring
Shari’ah compliance of IFIs. |
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