Pakistan: Financial regulator introduces rules to improve Shariah advisory services
Source: Middle East Insurance Review | Nov 2017
Global Regulation Takaful
The Securities and Exchange Commission of Pakistan (SECP) has introduced draft Shariah Advisers Regulations 2017 to enhance the credibility of Islamic financial services sector.
The regulations, framed under the Companies Act 2017, are expected to professionalise Shariah advisory services, said the SECP. Companies would only be able to engage the Shariah advisers who would be on the SECP’s panel.
To join this panel, Shariah advisers would need to meet fit-and-proper criteria and abide by a code of conduct that emphasises independence and objectivity, it added.
The regulations have been drafted after an extensive consultation process with the representatives of Shariah advisers, Islamic Financial Services Board Malaysia, State Bank of Pakistan, Pakistan Stock Exchange, Institute of Chartered Accountants of Pakistan, takaful operators, Modaraba and NBFI Association, Mutual Funds Association of Pakistan and Shariah Board of SECP.
The draft Shariah Advisers Regulations 2017, available on the website of SECP, were open to public for consultation in October and stakeholders were given two weeks to share their views.
The SECP would notify the final regulations after taking into consideration the comments, suggestions and inputs received during the public consultation,
The SECP regulates important elements of Islamic financial services industry. These elements include takaful operators, Islamic mutual and pension funds, modarabas and non-banking financial institutions (NBFIs), Shariah-compliant companies, Shariah-compliant securities and Shariah-compliant real estate investment trusts. M