There is also limited awareness of how scholars have to be able to read, understand and sometimes challenge draft contracts produced by an institution’s advisors. Conversely, matching the objectives and expectations of financial institutions and their advisors can be highly challenging. Financial institutions must adhere to strict product development timetables and ultimately make money. Delays are expensive. Better management, coordination and understanding of the Shariah advisory process, as well as the increased availability of information related to it, would ensure such delays and problems are kept to a minimum.

Financial institutions also face problems with the Shariah process because they do not have sufficiently qualified and experienced in-house personnel to get the best out of Shariah advisors and manage the Shariah advisory process. In recent years, Shariah coordination has emerged as a recognised function within financial institutions to assist in the product development process (and beyond) in Islamic banking and finance. While fully-fledged Islamic banks tend to appoint in-house Shariah coordinators, most asset management companies prefer to outsource this function to independent Shariah advisory firms.

Shariah coordination involves working closely with product development teams of financial institutions and their in-house legal counsel, tax advisors and compliance departments and external law firms. Most significantly, it involves working with Shariah scholars who may sit on the institution’s own Shariah Supervisory Boards or that of an associated institution or partner.

Islamic Finance Training, in association with leading Shariah technician, Dr Humayon Dar, have developed this unique 3-day training programme to enable you and your institution to better understand and coordinate the Shariah advisory process. Learn to understand what is required of your institution and how Shariah advisors work and think. Learn how to avoid the common problems associated with Shariah advisory and avoid costly delays.

Developed and delivered by one the world’s leading Shariah technicians, the course will offer practical solutions to issues common associated with the Shariah advisory process.

WHO SHOULD ATTEND

• Representatives of financial institutions offering Islamic financial products
• Product development personnel within banks and other financial institutions
• Shariah Scholars
• In-house Shariah advisors/coordinators
• Shariah audit & control professionals
• Compliance offices
• Legal counsel
• Islamic bankers
• Fund managers
• Auditors
• Risk managers
• Regulators and central bankers

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COURESE OBJECTIVE

• The need for Shariah coordination in financial institutions
• Effectively using Shariah advisory services
• Product innovation and the role of Shariah coordination
• Solving common problems involved with Shariah advisory
• Regulation and Shariah advisory

COURSE AGENDA

Day One

Session 1: Shariah coordination, its nature, need and scope in Islamic banking & finance

• Some fundamental tools/concept in Shariah coordination
• Shariah, Fiqh and Shariah advisement
• Model of Shariah advertisement
  • Embedded Shariah Supervisory Boards/Committees
  • In-house Shariah advisors
  • External Shariah scholars
  • Independent Shariah advisory firms
• Fatwa
  • Fatwa and its procurement
• Shariah monitoring
  • Shariah monitoring, review and audit: need, nature and scope
• Role of Shariah coordination in Shariah advisory services

• Shariah, Fiqh and Shariah advisory
• Explication of Shariah coordination in the context of:
  • Embedded Shariah Supervisory Boards/ Committees
  • Third party Shariah Supervisory Boards/ Committees
  • Independent Shariah advisory firms

Session 2: A focus on Shariah advisory services

• Comparative analysis of Shariah advisory firms
• A focus on Shariah scholars, their specialism and their perception in the market
• An innovative model of Shariah coordination: Case study of a European bank
  

Session 3: Regulation of Shariah advisory services

• Malaysian model
• Pakistani model
• AAOIFI’s standard on Governance of Shariah Advisement

Session 4

• In this section, we shall start working on developing a new product, with an objective to obtain Shariah-compliance on the product by the end of this training program

Day Two

Session 5: Shariah advice and law of the land

• Conflicts between Shariah and law of the land
• Harmonising Shariah with law of the land

Session 6: Innovation and the role of Shariah coordination

• Introducing innovation to Shariah scholars
• Seeking advice on hedge funds and other alternative investment vehicles

Session 7: Creating harmonization in Shariah rulings

• Analysing new trends in Islamic financial services industry and the evolving Shariah opinions
• Cross-regional integration of Shariah rulings and its impact on product development

Session 8: Seeking Shariah advise – a case study

• Identifying what you want to achieve from a given structure
• Conveying to scholars what you want to do
• Sharing with them what is done conventionally to achieve what you want to do
• Seeking clearance on the methodology underlying your structure
• Issuance of Fatwa

Session 9

• Further discussion on the product to be developed in compliance with Shariah (from Session 4)

Day 3

Session 10: Use of technology in Shariah coordination

• Conference calls through video link and the Internet
• Mobile phones
• Shariah e-groups and online platforms

Session 11: Shariah controversies and the role of a Shariah coordinator

• Recent controversies over Sukuk structures
• Implications for product development

Session 12: Seeking Shariah advice on structured products – a case study

• Reading minds of Shariah scholars: how they think and approach a given problem before delivering Shariah pronouncements
• Using simple tools like speculation, leverage etc. in your favour to develop innovative products

Session 13

• This session will provide an opportunity to the participants to discuss any matters arising from the training program

Session 14

• Final session on developing a Shariah-compliant product (from Sessions 4 and 9)

Course Conclusion & Review

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EXPERT COURSE DIRECTOR

Dr. Humayon Dar
Dr Humayon Dar is chief executive office of BMB Islamic. He is an internationally-renowned Islamic banking expert and Shariah advisor and represents a rare breed of scholars trained in Islamic and conventional economics, banking and finance. He studied conventional and Islamic economics at the International Islamic University Islamabad, and obtained an MPhil and PhD (both in economics) from Cambridge University.

Dr Dar has been associated with most of the current innovative developments in Islamic banking & finance, and is a leading player in the fast evolving Shariah advisory business. As chief executive officer of BMB Islamic UK Limited and a member of its own and other Shariah Supervisory Boards, he is actively involved in enhancing Shariah authenticity of Islamic financial products. His endeavour was acknowledged by Euromoney in 2006 and 2007, when the team led by him received the “Best Islamic Advisory & Assurance” award for two consecutive years.

Dr Dar is widely consulted by corporates, governments and regulatory bodies on matters related with Islamic banking & finance. He is frequently interviewed by both the print and electronic media, like Financial Times, BBC, CNN and numerous other local and regional news bodies.

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DATES & PRICE

Discounts

• Why not take advantage of our special group booking incentive and train a number of your team members at once? Send 3 delegates to any one course and receive a fourth place completely free of charge. Further incentives are also available for higher delegate numbers – please contact us directly for more details.

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