Takaful Corner

IFSB Issues Takaful Guidance

KUALA LUMPUR

Islamic financial services industry set for improved “soundness” and “stability” following IFSB ruling in Kuala Lumpur.

During the 15th meeting of the council of the Islamic Financial Services Board (IFSB) in Kuala Lumpur, three documents were approved that aim to further facilitate efforts towards enhancing the soundness and stability of the Islamic financial services industry. (1) Guiding Principles on Governance for Islamic Insurance (takāful) Undertakings (IFSB-8).

IFSB-8 seeks to provide guiding principles on governance for all takāful undertakings under each respective jurisdiction’s purview. The document has the following three main objectives; a) reinforcing relevant good governance practices; b) striking a balance between the interests and fair treatment of all stakeholders; and c) providing a solid foundation for all IFSB’s future standards that relate to good governance of takāful undertakings.

(2)  Conduct of Business for Institutions offering Islamic Financial Services (IFSB-9)
IFSB-9 aims to promote a climate of confidence and a supportive environment in the business of the Islamic financial services industry.

(3)  Guiding Principles on shari’a Governance System (IFSB-10) IFSB-10 aims to highlight to supervisory authorities in particular, and the industry’s other stakeholders in general, the components of a sound shari’a governance system.