The Chartered Institute for Securities & Investment is the largest and most widely respected professional body for those who work in the securities and investment industry in the UK and in a growing number of major financial centres round the world.
Evolved from the London Stock Exchange, CISI now have more than 40,000 members in 89 countries. In the past year, CISI set almost 40,000 examinations in 49 countries, covering a range of vocational qualifications.
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About the Islamic Finance Qualification (IFQ)
The IFQ is a ground-breaking qualification that covers Islamic finance from both a technical and a Shariah perspective, providing the first international benchmark in the area of Islamic finance. It provides candidates with an understanding of the influence of Shariah in a business context and prepares candidates to hold key positions in the Islamic finance and Takaful (Islamic insurance) industries. The qualification is appropriate for existing and new employees and those seeking a career in Islamic finance. Since its launch, the exam has been taken in over 40 countries.
Key Features of the IFQ
The Islamic Finance Qualification
- The IFQ provides a basic knowledge of the general principles of Shariah (Fiqh al Muamalat) and its application to Islamic banking and finance
- The IFQ covers the different types of Islamic finance contracts and products available
- The IFQ examines key practices used in the Islamic financial markets and the principles behind Investment selections
- Employing IFQ holders indicates that a company is contributing to the development and promotion of high ethical standards amongst its staff
- The IFQ syllabus, workbook, other teaching materials and exams have been developed with the support and collaboration of a panel of internationally recognised experts in Islamic finance
- The IFQ curriculum is reviewed regularly to reflect developments in the fast-changing world of Islamic financial services
- The IFQ was initiated and is supported by the Central Bank of Lebanon (Banque du Liban)
- The IFQ is awarded jointly by the Chartered Institute for Securities & Investment (recognized by Ofqual, the UK government education regulator) and l’Ecole Supérieure des Affaires (ESA)
- The IFQ is an internationally available and recognized qualification
Quick Facts about the IFQ
- Q: Is the IFQ assessment stand-alone?
A: Yes, the examination can be taken independently at any time
- Q: How many questions are included in the IFQ assessment?
A: 100 questions
- Q: How long is the assessment?
A: Two hours
- Q: What is the pass mark for the IFQ assessment?
A: 70%
- Q: What is the current pass rate?
A: 63%
What is covered in the IFQ Curriculum?
The IFQ curriculum is a detailed covers the following topics:
- Topic 1: An Introduction to Islam
- Topic 2: An Introduction to Islamic Banking & Finance
- Topic 3: Islamic Law of Contracts
- Topic 4: Financial techniques Applied by Islamic Banks
- Topic 5: Financial Statements for Islamic Banks
- Topic 6: Islamic Corporate Governance
- Topic 7: Islamic Asset & Fund Management
- Topic 8: The Sukuk Market
- Topic 9: Islamic Insurance – Takaful
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REDmoney has been awarded Accredited Training Provider status by CISI. We conduct intensive courses to allow candidates sitting the IFQ examination to effectively prepare for the assessment. Our 3 day courses are delivered by qualified and experienced industry experts and fully cover the IFQ curriculum.
Details of scheduled preparation courses can be seen here.
A comprehensive workbook, produced specifically for the IFQ, has been approved by the ACIF panel of experts for use in preparation for your examination. The workbook includes the following:
- Full coverage of the syllabus, with text written and reviewed by senior industry practitioners to help candidates prepare for the exam and understand their role
- Revision questions at the end of each chapter are designed to test knowledge and encourage candidates to give written answers, thereby increasing subject retention
- Clear explanations, graphics, tables and examples to ensure complex subject matter is easily understood and absorbed
- A syllabus learning map to help candidates find specific learning objectives in the workbook
- A comprehensive glossary of Islamic financial terms.
- A workbook plan providing a list of chapter headings and recommended study time for each section
- For the first time the CISI has produced an e-learning tool to accompany its IFQ workbook. It is an engaging online revision aid to be used in conjunction with the workbook. It covers the key, salient points of the syllabus and contains:
- Graphics
- Interactive exercises
Attend a Course! Click here for details.
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REDmoney was launched in 2004 to provide high-value publications, training and events for the global Islamic finance industry. With brand names such as Islamic Finance news, Islamic Finance training and REDmoney events the company is now firmly established as the market leader in this sector.
REDmoney have been awarded accredited training provider status by the Chartered Institute of Securities and Investment (www.cisi.org) for the provision of preparatory courses and assessment for the Islamic Finance Qualification (IFQ).
Why take your IFQ through REDmoney?
Through our highly-regarded training brands, Islamic Finance training and MIF Training, we have developed an excellent reputation within the Islamic finance industry. Since 2004 we have trained over 10,000 representatives of financial institutions, corporates and governments in the area of Islamic finance and financial products.
Our course directors represent leading figures from the Islamic finance industry, all of whom have an extensive understanding of Islamic finance as well as a practical exposure to the industry. Our courses are continuously updated and redeveloped to ensure topicality. Our understanding of the global Islamic finance industry and the requirements of financial institutions operating in this ever-changing sector is unrivalled.
Details of upcoming REDmoney IFQ preparation courses can be seen here.
For more details on the IFQ please contact Andrew Tebbutt or Subashini Jaganathan on +603 2162 7800.
Our IFQ preparation courses can be taken in-house for groups of eight or more delegates. Please contact us directly for more information.
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DAY ONE
Welcome and Introduction
Session 1: A practical Introduction to Islamic Finance
- Development of Islamic finance
- Players, markets and components of Islamic finance & banking
- Forbidden transactions in Islamic commercial law
- Theory of contracts – the framework to understand Islamic finance
- Key differences to conventional finance
- Promise and its application in Islamic finance
Exercise: Review of Islamic Finance Principles
Session 2: Islamic Financial Technique: Sale-Based Contracts
- Examining the key characteristics and uses of the following sale based Islamic products:
- Murabahah contract
- Bai al-Inah – why the controversy?
- Tawarruq (commodity Murabahah) – why is it so popular?
- Application of Murabahah in export finance
- Application of Tawarruq in financing and deposit products
- Application of Arbun to synthesis option behavior
- Salam Contract
- Istisna Contract
- Issues in letter of credit and letter of guarantee
Structuring Exercise: Sale based financing
Session 3: Islamic Financial Technique: Lease-Based & Equity Based Contracts
- Why leasing is an easy fit for Islamic finance and banking?
- Types of leasing – is there an Islamic finance lease?
- Lease based structures
- Issues in lease based structures
- Musharakah
- Mudarabah
- Summary of all Islamic financing instruments
DAY TWO
Welcome and Introduction
Session 1: A practical Introduction to Islamic Finance
- Session 1: Deposit Instruments
- Sources of funds vs uses of funds
- Understanding various deposit products
- Mudarabah investment account
- Sale based deposit instrument: Tawarruq and Bai Al-Inah
- Al-Wadiah deposit and issues
- Al-Wakalah deposit
- Comparison of all the deposit instruments
Session 2: The Islamic Bond Market – Sukuk
- The implications of Shariah principles on debt capital market
- How do Sukuk differ from conventional bonds and securitization?
- Understanding various Sukuk structures:
- Mudarabah Sukuk
- Musharakah Sukuk
- Ijarah Sukuk
- Salam Sukuk
- Istisna Sukuk
- AAOIFI pronouncement on Sukuk
- Issues in the Sukuk market
Session 3: The Islamic Asset & Fund Management
- The implications of Shariah principles on Islamic investment activities
- Understanding various funds structures:
- Murabahah
- Mudarabah
- Ijarah
- Issues related to Islamic fund management:
- Non-compliant income and stocks
- Managing liquidity and market risks
- The role of Shariah Board
DAY THREE
Session 1: Islamic Insurance - Takaful
- The implications of Shariah principles on insurance operations
- Types of insurance and Takaful
- Takaful structure:
- Wakalah
- Mudarabah
- Hybrid model
- Issues in Takaful operations:
- Role of Qard al-Hassan from shareholders
- Distribution of underwriting surpluses
- Technical provision – what is this?
- Internal risk pooling arrangement
- How does reTakaful work?
Session 2: Financial Statements for Islamic Banks
- Conceptual framework on IFRS and AAOIFI
- Understanding main financial statements prepared by companies
- Accrual method and its implication for Islamic banks
- Accounting treatment of Islamic financial instruments – a brief review
- Key issues in Islamic investment account – different accounting interpretations
- Zakat calculation methods
Session 3: Islamic Corporate Governance
- What is corporate governance and why is it important?
- Why banks present special corporate governance challenges?
- What risks do banks need to manage?
- Do Islamic banks face the same risks?
- Shariah boards and its implication on corporate governance
- Restricted Investment Account Holders (RIAH) and Unrestricted Investment Account Holders (UIAH) – how does it affect corporate governance?
Course Wrap Up & Review
Dates & Price
23rd — 25th April 2012, KUALA LUMPUR
USD1,650 per person (with e-Learning option)
USD1,550 per person (without e-Learning option)
11th — 13th June 2012, JAKARTA
USD1,650 per person (with e-Learning option)
USD1,550 per person (without e-Learning option)
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