This book was published in conjunction with the 3rd IFSB Seminar on Legal Issues in the Islamic Financial Services Industry, held in Kuala Lumpur in March 2007. It is compiled from five original surveys commissioned by the IFSB of several reputable international firms. The surveys addressed (i) the effectiveness of the legal framework, (ii) insolvency laws, (iii) securitisation laws, (iv) trust laws, and (v) roles of the Sharî'ah boards in relation to the Islamic financial services industry. This work is the first large-scale stock-taking initiative ever carried out, in terms of analysing the existing legal framework and examining the key legal issues faced by the industry across several jurisdictions, especially in the light of the more globalised environment the industry is entering.

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This book will enlighten industry stakeholders, provide them with future direction, and assist them in facing the new challenges that have resulted from the recent crisis. The book comprises chapters written by several reputable scholars and international firms commissioned by the IFSB to share their thoughts and experiences on related issues. Several topics are discussed by the contributors: (i) Islamic finance and the financial crisis: the implications for Islamic banking; (ii) Islamic finance and the financial crisis: the implications for Takâful; (iii) emerging financial architecture: implications for Islamic finance; (iv) capital requirements, counter-cyclicality and Islamic finance (v) Islamic financial law: back to basics; and (vi) the meaning of ratings for Islamic financial institutions and Sharî'ah-compliant instruments.

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This book provides insightful information on how governments as well as regulatory and supervisory authorities can aid the development of the Islamic capital market by providing infrastructure, removing regulatory and legal hindrances, and introducing specific laws and regulations to cater to the specificities of Islamic capital market products. It comprises chapters written by several distinguished scholars who share their thoughts and experiences on pertinent issues. The topics covered are: (i) the development of Islamic capital market strategies; (ii) the building of a liquidity management infrastructure for Islamic finance; and (iii) legal aspects of Islamic asset securitisation.

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This book is based on the structure of the IFSB- World Bank Roundtable Discussion. It is hoped that the book will enlighten industry stakeholders and provide them with a better understanding of the issues surrounding the insolvency regimes that should be developed for the IFSI. Chapter One focuses on the way insolvency issues affect Sharî'ah-compliant transactions as well as highlights the issues surrounding the recognition of Sharî'ah by courts in conventional legal systems. The chapter also discusses the need to consider the specificities of the contracts used in Sharî'ah-compliant transactions, when considering specific insolvency arrangements in Islamic finance and also discusses issues that would arise in the event of insolvency, and provides some recommendations on how to prevent disputes arising from insolvency. Chapters Two and Three consist of commentary papers by experts and Central Banks, respectively. Chapter Four provides an analytical framework on challenges and issues relating to insolvency regimes in Islamic finance and Chapter Five provides a synthesis of the comments, discussions and Q&A session during the Roundtable Discussion.

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