The IFSB published answers to a new set of Frequently Asked Questions (FAQs) on four of its Standards
Date posted: 31 October 2022
Kuala Lumpur, 20 October 2022 – The IFSB released a new set of Frequently Asked Questions (FAQs) on four of its Standards namely; GN-3: Guidance Note on the Practice of Smoothing the Profits Payout to Investment Account Holders, IFSB-17: Core Principles for Islamic Finance Regulation (Banking Segment), IFSB-26: Core Principles for Islamic Finance Regulation (Financial Market Infrastructure) and IFSB-8: Guiding Principles on Governance for Takaful (Islamic Insurance) Undertaking.
The new set of FAQs aims at encouraging the implementation of IFSB standards through providing simplified answers to some questions that are frequently asked by different users of IFSB standards.
The Secretary-General of the IFSB, Dr. Bello Lawal Danbatta commented on the importance of providing consistent technical support by FAQs publication: “We have received positive feedback from our members on previous FAQs publications, which shows the need of addressing the concerns related to certain topics. Our continuous work in this direction that pioneered in 2018, without a doubt, is a significant input in building a proper understanding of issued IFSB Standards, Guidance Notes and Technical Notes, as well as their implementation by the institutions that seek clarity within the process”
The FAQs for GN-3 provide clarifications on the practices of smoothing profits for the investment account holders (IAHs) in terms of their techniques, purposes, motivations, constraints and other related issues. The two (2) sets of FAQs for IFSB-17 and IFSB-26 explains more on the core principles for regulating the Islamic banking segment and financial market infrastructure segment, respectively. Both sets highlight the significance of considering these two standards in drafting regulations related to Islamic banks and financial market infrastructure entities. The fourth set of FAQs is about IFSB-8 and it covers technical and general enquires related to the governance of takaful undertaking.
The IFSB welcomes enquires, suggestions and comments for improvement of the FAQs, providing more clarification on the standards. Comments and suggestions may be sent to: firstname.lastname@example.org. These FAQs are available on the IFSB website under the ‘Standards Development’ section for download: www.ifsb.org
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