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WorksheetsLEGAL ASPECTS AND GOVERNANCE IN ISLAMIC FINANCE
Total questions: 10
Worksheet time: 6mins
Acts Governing the Financial System in Malaysia are as follows EXCEPT
CENTRAL BANK OF MALAYSIA ACT 2009
SECURITIES COMMISSION ACT 1993
LABUAN FINANCIAL SERVICES AUTHORITY ACT 1996
KUALA LUMPUR FINANCIAL SERVICES AUTHORITY ACT 1997
Islamic Financial Services Act 2013 (IFSA 2013)
Empowers the BNM to issue standards on Shariah
Empowers the BNM to issue standards on Non Shariah
Empowers the BNM to regulate and supervise the Shariah Financial industry
Empowers the BNM to regulate and supervise the Non Financial Shariah industry
Regulatory Authorities in Malaysia are the followings EXCEPT
BNM focuses on three (3) pillars:
Financial Stability
Monetary Stability
Payment System
Capital Market
Roles and Functions of SC are:
Regulating all matters relating to securities and derivatives contracts
Develop, enhance and implement an effective surveillance framework to ensure safety and soundness of financial institutions and to enforce sound practices in them.
Issuing Approved Accounting Standards in Malaysia
Registration of Companies in Malaysia
Models of Shariah governance structures that are being practiced worldwide EXCEPT:
Centralised Shariah Governance Structure
Laissez Faire Shariah Governance Structure
Hybrid Shariah Governance Structure
Decentralised Shariah Governance Structure
The following are correct statement on Shariah Committee, EXCEPT
Provide objective and sound advice to the IFI.
Must have a charter that sets out the mandate, responsibilities and procedures of the Shariah committee including matters reserved for its decision or advice.
Must devote sufficient time to prepare for and attend Shariah committee meetings.
Not to disclose the nature and extent of his interest that constitutes or gives rise to a conflict or potential conflict of interest.
Shariah audit refers to a function that provides an independent assessment on:
the quality and effectiveness of the IFI’s external control
the quality and effectiveness of the IFI’s internal control
risk management systems
governance processes as well as the overall compliance of the IFI’s operations, business, affairs and activities with Shariah
Issues and Challenges in Implementing Shariah Governance
The lack of knowledge and comprehension among Shariah scholars about modern financial practices
Shortage of Shariah scholars who possesses working knowledge of both Islamic fiqh and modern economics and finance to serve Islamic financial institutions.
The challenge to synergise between the Shariah, regulatory, legal, finance and tax requirements in product development
Islamic banking is treated as equal to the mainstream conventional banking activities
A Shariah committee member must not
serve the same IFI for more than 5 years
have competing time commitments that may impair his ability to discharge his duties effectively
accept any appointment in more than two licensed Islamic bank, one licensed takaful operator and one prescribed institution
be a substantial shareholder, executive director or senior officer of the IFI or any of its affiliates; or
