Pakistan: Regulator approves rules for Shariah advisors
Source: Middle East Insurance Review | Dec 2017
The Securities and Exchange Commission of Pakistan (SECP) has approved the Shariah Advisors Regulations 2017 aimed to enhance the credibility of the Islamic financial services sector. Framed under the Companies Act 2017, the new regulations will discipline and professionalise Shariah advisory in Pakistan.
Effectively, companies are required to engage only the Shariah advisors registered with the SECP. To register, Shariah advisors would need to meet proper criteria and abide by a code of professional behaviour that emphasises objectivity, integrity, and independence of a professional Shariah advisor.
The regulations have been formulated after an extensive consultation process with representatives of Shariah advisors, takaful operators, Islamic Financial Services Board (IFSB) in Malaysia, State Bank of Pakistan, Pakistan Stock Exchange, Institute of Chartered Accountants of Pakistan, modaraba and NBFI Association, Mutual Funds Association of Pakistan, and the Shariah Board of the SECP.
The SECP regulates various key stakeholders of the Islamic financial services industry including Islamic mutual and pension funds, modarabas and NBFIs, takaful operators, Shariah-compliant companies, Shariah-compliant securities, Shariah-compliant real estate investment trusts, and Shariah-compliant indices. M