Rabat, MOROCCO – 2 July 2025 – The Council of the Islamic Financial Services Board (IFSB), at its 46th meeting held in Rabat, Morocco, adopted a new standard on Effective Supervision of Sharīʻah governance and approved the issuance of a Guidance Note aimed at strengthening crisis preparedness in the takāful sector.
At its 46th Council Meeting in Rabat, the Council adopted IFSB-31: Guiding Principles for Effective Supervision of Sharīʻah Governance, a standard aimed at strengthening supervisory oversight of Sharīʻah governance across Islamic banks, takāful undertakings, and Islamic capital market institutions, which is foundational to financial stability and consumer protection in Islamic finance. The issuance of this standard does not replace IFSB-10: Guiding Principles on Sharīʻah Governance Systems for Institutions offering Islamic Financial Services. The standard recognises differences in legal and institutional frameworks across jurisdictions and promotes proportionate implementation and consistency in supervisory outcomes. It is applicable to all supervisors that license Islamic financial institutions or Islamic capital market products, implementable under their financial stability or market conduct mandates.
The Council also approved the issuance of a Guidance Note, GN-10: Recovery and Resolution for Takāful Undertakings, marking a significant advancement in the IFSB’s ongoing efforts to strengthen the resilience and crisis preparedness in the takāful sector. The Guidance Note is designed to assist regulatory and supervisory authorities in developing robust recovery and resolution frameworks tailored to the specificities of takāful. GN-10 provides guidance on the application of the IFSB Takāful Core Principles (TCPs), particularly TCP-12 and TCP-16, and complements broader international frameworks including the Financial Stability Board’s Key Attributes of Effective Resolution Regimes for Financial Institutions and the relevant IAIS guidance.
The standards will be available for download on the IFSB website at www.ifsb.org.
