The IFSB Publishes the French Version of Five of its Standards
Date posted: 20 April 2021
20 April 2021, Kuala Lumpur - The Islamic Financial Services Board (IFSB) is pleased to announce the release of the French version of Five IFSB Standards: IFSB-3 Guiding Principles on Corporate Governance for Institutions offering only Islamic Financial Services (Excluding Islamic Insurance (Takâful) Institutions and Islamic Mutual Funds), IFSB-13 Guiding Principles on Stress Testing for Institutions offering Islamic Financial Services, IFSB-14 Standard On Risk Management for Takāful (Islamic Insurance) Undertakings, IFSB-15 Revised Capital Adequacy Standard for Institutions Offering Islamic Financial Services Excluding Islamic Insurance (Takāful) Institutions and Islamic Collective Investment Schemes] and IFSB-21 Core Principles for Islamic Finance Regulation [Islamic Capital Market Segment].
Secretary-General of the IFSB, Dr. Bello Lawal Danbatta said, “The issuance of the French version of IFSB standards is a result of the continuous support extended by Islamic Development Bank (IsDB) and the valuable collaboration with Union des Banques Maghrébines (UBM). The issuance of the French version of these five standards also reflects the IFSB’s strong commitment to cater to the increasing interest and recognition of Islamic finance among the French-speaking jurisdictions around the world. The five newly translated Standards are other milestones on the path towards improving the implementation rates of the IFSB Standards in the member countries.” He added that, “the translation of these five documents reflect the continued commitment of the IFSB to increase the implementation of the standards among its members, and is part of the IFSB’s Strategic Performance Plan (SPP) 2019-2021”.
All IFSB Standards, Guidance and Technical Notes have been issued in both English and Arabic languages. The IFSB is then progressively translating the Standards, Guidance and Technical Notes into French language, with a further three standards planned to be translated into Russian language in 2021. This translation initiative complements the other implementation activities including the country and regional workshops, technical assistance, policy advice and discussions, round table discussions, webinars and the IFSB E-learning Portal.
Details of the newly translated documents are as follows:
IFSB-3: Guiding Principles on Corporate Governance for Institutions offering only Islamic Financial Services (Excluding Islamic Insurance (Takâful) Institutions and Islamic Mutual Funds)
This standard sets out seven guiding principles of prudential requirements in the area of corporate governance for institutions offering only Islamic financial services (IIFS) (excluding (a) Islamic insurance (takaful) institutions and (b) Islamic mutual funds). The Guiding Principles are divided into four parts:
- general governance approach of IIFS;
- rights of investment account holders (IAH);
- compliance with Islamic Sharī`ah rules and principles; and
- transparency of financial reporting in respect of investment accounts.
IFSB-13: Guiding Principles on Stress Testing for Institutions offering Islamic Financial Services
These Guiding Principles are intended to complement the existing and future IFSB standards and guidelines in the banking segment of the IFSI. In attempting to address the specificities of institutions offering Islamic financial services (IIFS) in the banking segment with respect to stress testing, the IFSB intends that this document shall complement other existing internationally recognised frameworks that set out sound principles and best practices pertaining to stress testing for conventional counterparts.
IFSB-14: Standard on Risk Management for Takāful (Islamic Insurance) Undertakings
The standard is intended to establish minimum standards in the area of risk management, for the direction and guidance of Takāful Operators (TOs) as well as insurance/Takāful supervisors. The Standard discusses how management of risks inherent in the TU should be implemented.
IFSB-15: Revised Capital Adequacy Standard for Institutions Offering Islamic Financial Services Excluding Islamic Insurance (Takāful) Institutions and Islamic Collective Investment Schemes]
This Standard covers some additional areas not previously included in IFSB standards related to capital adequacy. It also endeavors to provide a more comprehensive guidance to supervisory authorities on the application of capital adequacy regulations for IIFS by combining and enhancing the contents of IFSB-2 and IFSB-7, thus providing a level playing field to IIFS vis-à-vis market players. Further, it provides the supervisors with necessary flexibility for its application across regions and on small to fairly large and sophisticated IIFS. The IFSB will continue to enhance the guidance provided in this standard in the nearest future.
IFSB-21: Core Principles for Islamic Finance Regulation [Islamic Capital Market Segment]
The main objective of this Standard is to provide a set of core principles for the regulation and supervision of the ICM, taking into consideration the specificities of Islamic finance, while complementing the existing international standards, principally IOSCO’s “Objectives and Principles of Securities Regulation and its Methodology”.
The translation of IFSB-3, 13 and 15 was in collaboration with UBM and financed by IsDB under the MOU signed between IFSB and UBM in July 2018 and the grant provided by IsDB to UBM in February 2019. IFSB-14 and 21 were, however, translated solely by IFSB resources.
IFSB-3, IFSB-13 and IFSB-14, IFSB-15 and IFSB-21 documents in English, Arabic and French and are available for download in the IFSB website www.ifsb.org. The IFSB Secretariat will be delighted to receive any comments or feedback about the quality of the translated text at the following email address: firstname.lastname@example.org
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