Understanding Legal Risks Of Asset Securitization And Insolvency In Islamic Finance

Kuala Lumpur, February 7, 2006 – The evolving developments in the Islamic financial services industry of late has called for greater understanding of the industry’s legal risks. Global industry players are constantly studying and deliberating these legal issues in their offering of Islamic financial services on two increasingly important areas namely asset securitization and insolvency.

Legal practitioners, regulators, finance officers, accountants, retail and private bankers as well as Shari’ah scholars are now joining industry experts and practitioners in highlighting these inevitable issues. In line with these developments, the Islamic Financial Services Board (IFSB), with the support of the Islamic Development Bank and the Asian Development Bank is organizing the 2nd Seminar on Legal Issues in the Islamic Financial Services Industry: “Towards An Effective Legal Framework for Islamic Finance: Asset Securitization and Insolvency”. The Seminar will be held on 14 – 15 March 2006 at The Landmark London Hotel, London.

The IFSB, an international-standard setting body of regulatory and supervisory agencies for the Islamic financial services industry, has recently adopted two prudential standards on capital adequacy and risk management for institutions offering Islamic financial services.

The Secretary-General of the IFSB, Professor Rifaat Ahmed Abdel Karim, said, “The Seminar highlights a current and relevant concern among Islamic financial industry players – legal risks of asset securitization and insolvency which need to be identified and managed to ensure both compliance with Shari’ah principles and proper risk management. Inevitably, supporting sectors such as regulators and legal practitioners also need to be well-versed and informed of these risks.”

Among the topics and case studies to be discussed during the Seminar are:

• A General Survey of Legal Issues in Islamic Finance
• Sovereign and Inter-Governmental Organizations Sukuk
• Corporate Sukuk
• The Future for Sukuk
• Insolvency in Islamic Financial Institutions: A Survey of Relevant Legislation
• Insolvency in Islamic Financial Institutions: A Shari `ah Perspective
• Preconditions for Effective Supervision and Stability

Among the confirmed speakers for the Seminar are:

• Dr. Mohd Daud Bakar , President & CEO, International Institute of Islamic Finance Inc.
• Michael J.T. McMillen , Partner, Dechert LLP, New York, USA
• Professor Barry A.K Rider , University of Cambridge, UK
• Yusuf Talal DeLorenzo , Shari’ah Supervisor, Yasaar Ltd, London
• Tim Plews , Partner, Clifford Chance, UK
• Sarah Gooden , Partner, Trowers & Hamlins, London, UK
• Abradat Kamalpour , Partner, Dechert LLP, UK
• Hamid Yunis , Partner, Taylor Wessing, UK
• Mohaimin Chowdury , Head of Legal and Shari’ah Compliance, European Islamic Investment Bank Plc, UK
• Gopala Krishnan Sundaram , Director, Legal Department, Bank Negara Malaysia
• Dr. Mohamad L. Hammour , Executive Chairman, Guidance Financial Group, USA
• Abdulkader Thomas , President & CEO, SHAPE™ Financial Corporation, USA
• Ijlal Ahmed Alvi , Chief Executive Officer, International Islamic Financial Market, Bahrain
• Nathif J. Adam , Head of Investments and Financial Institutions, Sharjah Islamic Bank, UAE
• Professor Simon Archer , University of Surrey, UK
• Ibrahim Mardam-Bey , Executive VP, Bemo Securitisation, Lebanon
• Qudeer Latif , Lawyer, Clifford Chance, UK
• Stella Cox , Managing Director, Dawnay Day Global Investment Limited, UK
• Mohd Saeedullah , Treasury Department, Islamic Development Bank
• Nabil A. Naseef , Advisor-in-Charge, Assets Management Department, Islamic Development Bank

The IFSB will also be organising a Workshop on the Exposure Draft (ED) 3: Guiding Principles on Corporate Governance in Islamic Financial Institutions prior to the Seminar on 13 th March 2006 . The ED is available for review on the IFSB website http://www.ifsb.org

The IFSB has set up a dedicated website for the Seminar http://www.ifsb.org/landmark which offers up-to-date information and registration form that can be downloaded. Interested participants may also call IFSB at +603-26984248 ext.119 or email [email protected] for registration.