Reinforcing Shariah Governance of Islamic Financial InstitutionsUnderstanding the Shariah Governance Policy Document (SGP) 2019 and Building a Robust Shariah Compliant Culture and Governance Function
Course Background
Ensuring Shariah compliance is the fundamental task of Islamic Financial Institutions (IFIs). Inadequate attention to Shariah compliance aspects will inevitably lead to negative repercussions for IFIs such as reputational risk, legal punishment and other financial loss. The new Shariah Governance Policy (SGP) Document 2019 as set by BNM places a greater burden of responsibility on the company’s board and Shariah committee to ensure that its aims, operations and business affairs are in compliance with Shariah principles. Stricter regulations are forcing Shariah committee members to play a more active role in decisions made at the highest levels. A Shariah committee member must now attend at least 75% of the Shariah committee meetings held in each financial year and are not allowed to delegate this task to another person. In order for any decision made to be valid, the new laws dictate that there has to be a majority of Shariah qualified members present at each meeting.
The appointment and disqualification of a Shariah committee board member has also changed significantly whereby they must not serve the same IFI for more than nine (9) years and is also not allowed to be an active politician. To avoid any conflict of interest, they or their immediate family members are also not allowed to be a substantial shareholder, executive director/senior officer of the IFI and are prohibited from having any related business or contractual relationships.
With regards to the laws on transparency, all disclosures made by the Shariah committee must now be signed by not less than 2 members. All policies made by IFIs will also have to be endorsed by both the Shariah committee and approved by the board in order to ensure that there is adequate input by the Shariah committee.
With the growth and maturity of the Islamic finance industry, the Board, Shariah Committee and Senior Management are expected to improve the quality of internal control functions. This seminar will focus on the key features of the newly issued SGP 2019, new oversight functions and duties of key organs with regards to Shariah compliance requirements, promote better Shariah compliance culture and improve the quality of internal control functions.
KEY LEARNING OUTCOMES
- Understand key aspects of the new Shariah Governance Policy (SGP) Document 2019, as issued by BNM
- Strengthen accountability of the boardroom and committee for Shariah governance initiatives
- Avoid abuse of power and conflict of interest by setting new term limits for governance
- Appointment and termination for breach of trust
- Shariah code of corporate governance: Identifying issues and repercussions for poor transparency and lack of disclosure
- Ensure that all officers and personnel have sufficient Shariah qualifications prior to discharging their responsibilities
- Apply the principles of Maqasid Shariah for wealth preservation and distribution
- Build a more effective Shariah complaint culture
Date: 20th January 2020
Venue: Kuala Lumpur
- Product Development Staff
- Directors & Board Members
- Company secretaries
- Senior managers and executives of governance/compliance/Shariah governance
- Audit committee and internal auditors
- Corporate lawyers and in-house counsel
- Compliance and audit staff
- Senior company management
- Regulatory authorities
Early bird : RM1,799
Early Bird: Registrations received on or before 24th December 2019, will receive a 10% discount. No discount shall be given to registrations received after this cut-off date.
Standard : RM1,999 per delegate
2 delegates (5% Discount) : RM1,899 per delegate
3 delegates (15% Discount) : RM1,699 per delegate
4 delegates (25% Discount) : RM1,9599 per delegate
5 delegates (30% Discount) : RM1,399 per delegate
If you are looking for an in-house training program or wish to send a group to an existing public program, kindly please contact Andrew Tebbutt at [email protected] or +603 2162 7802.
Learn More
Kindly complete the registration form and email to [email protected] or fax +603 2162 7810
For enquiries please contact:
Mathias Sosovele
Account Manager, REDmoney Seminars
[email protected]
Direct Line: +603 2162 7800 ext 25
Normariya Sariman
Account Manager, REDmoney Seminars
[email protected]
Direct Line: +603 2162 7800 ext 44
Ramesh Kalimuthu
Events Sales Director
[email protected]
Direct Line: +603 2162 7800 ext 65
Fax: +603 2162 7810
For sponsorship & speaking opportunities:
Andrew Tebbutt
Managing Director
[email protected]
Direct Line: +603 2162 7802
For marketing and media enquiries
Anna Rozana Ramli
Marketing Director
[email protected]
Direct Line: +603 2162 7800 ext 22
Date: 20th January 2020
Venue: Kuala Lumpur
- Product Development Staff
- Directors & Board Members
- Company secretaries
- Senior managers and executives of governance/compliance/Shariah governance
- Audit committee and internal auditors
- Corporate lawyers and in-house counsel
- Compliance and audit staff
- Senior company management
- Regulatory authorities
Early bird : RM1,799
Early Bird: Registrations received on or before 24th December 2019, will receive a 10% discount. No discount shall be given to registrations received after this cut-off date.
Standard : RM1,999 per delegate
2 delegates (5% Discount) : RM1,899 per delegate
3 delegates (15% Discount) : RM1,699 per delegate
4 delegates (25% Discount) : RM1,9599 per delegate
5 delegates (30% Discount) : RM1,399 per delegate
If you are looking for an in-house training program or wish to send a group to an existing public program, kindly please contact Andrew Tebbutt at [email protected] or +603 2162 7802./p>
Kindly complete the registration form and email to [email protected] or fax +603 2162 7810
Course Background
Ensuring Shariah compliance is the fundamental task of Islamic Financial Institutions (IFIs). Inadequate attention to Shariah compliance aspects will inevitably lead to negative repercussions for IFIs such as reputational risk, legal punishment and other financial loss. The new Shariah Governance Policy (SGP) Document 2019 as set by BNM places a greater burden of responsibility on the company’s board and Shariah committee to ensure that its aims, operations and business affairs are in compliance with Shariah principles. Stricter regulations are forcing Shariah committee members to play a more active role in decisions made at the highest levels. A Shariah committee member must now attend at least 75% of the Shariah committee meetings held in each financial year and are not allowed to delegate this task to another person. In order for any decision made to be valid, the new laws dictate that there has to be a majority of Shariah qualified members present at each meeting.
The appointment and disqualification of a Shariah committee board member has also changed significantly whereby they must not serve the same IFI for more than nine (9) years and is also not allowed to be an active politician. To avoid any conflict of interest, they or their immediate family members are also not allowed to be a substantial shareholder, executive director/senior officer of the IFI and are prohibited from having any related business or contractual relationships.
With regards to the laws on transparency, all disclosures made by the Shariah committee must now be signed by not less than 2 members. All policies made by IFIs will also have to be endorsed by both the Shariah committee and approved by the board in order to ensure that there is adequate input by the Shariah committee.
With the growth and maturity of the Islamic finance industry, the Board, Shariah Committee and Senior Management are expected to improve the quality of internal control functions. This seminar will focus on the key features of the newly issued SGP 2019, new oversight functions and duties of key organs with regards to Shariah compliance requirements, promote better Shariah compliance culture and improve the quality of internal control functions.
KEY LEARNING OUTCOMES
- Understand key aspects of the new Shariah Governance Policy (SGP) Document 2019, as issued by BNM
- Strengthen accountability of the boardroom and committee for Shariah governance initiatives
- Avoid abuse of power and conflict of interest by setting new term limits for governance
- Appointment and termination for breach of trust
- Shariah code of corporate governance: Identifying issues and repercussions for poor transparency and lack of disclosure
- Ensure that all officers and personnel have sufficient Shariah qualifications prior to discharging their responsibilities
- Apply the principles of Maqasid Shariah for wealth preservation and distribution
- Build a more effective Shariah complaint culture
Seminar Agenda
Registration and Coffee
Session 1 (Part 1): Establishing Key Fundamentals of the Shariah Governance Policy Document 2019
- Assessing the importance of Shariah governance framework for IFIs
- Breaking down key areas within the new and enhanced Shariah Governance Policy Document
Dr. Rusni Hassan
Professor, IIUM Institute of Islamic Banking and Finance
Coffee & Networking Session
Session 1 (Part 2): Building the Right Shariah Culture and Enforcing the Right Governance and Regulatory Practices
- What are the expectations on the key organs within the company? Who is in charge of 360° implementation?
- Nurturing the Shariah compliance culture in IFIs
- Discussion:
- • How does the new SGP 2019 document address cases of abuse of power?
- Are board members and Shariah committee members at risk of greater liability suits?
Dr. Rusni Hassan
Professor, IIUM Institute of Islamic Banking and Finance
Lunch
Communicating Shariah Values and Ethics Across Islamic Finance
- Conducting an analysis of Shariah governance framework and policy documents in the light of Maqasid Shariah of wealth preservation
- Promoting faith, ethics and values as the gravity of Shariah culture manifestation in IFIs
- Strengthening governance through inter-disciplinary learning, environment and communication
- Discussion:
- What is the best approach to improve Shariah compliance culture in IFIs and which critical area to start with?
Muhammad Izzam Khazar
Head - Shariah Center of Excellence, Maybank Islamic
Coffee & Networking Session
Promoting Accountability for Governance and Practical Implementation of Shariah Principles
- Analyzing existing practices/models of IFIs in complying to the existing Shariah Governance Framework
- Recognizing key challenges in implementing the enhanced SGP 2019::
- Board of Directors
- Senior Management
- Shariah Committee
- Control Function : Shariah Advisory / Shariah Review / Shariah Audit / Shariah Risk Management
- Discussion:
- Are the new 9 year term limits a positive or negative?
- Is there too much power being afforded to Shariah committees and would this result in greater conflict with the board?
Ahmad Nazri Bin Ismail
Head - Group Shariah Risk Management, RHB Banking Group
End of Seminar
Seminar Speakers
Dr. Rusni Hassan
Professor, IIUM Institute of Islamic Banking and Finance
Dr. Rusni Hassan is a Professor at the Institute of Islamic Banking and Finance (IIUM). She graduated with LLB (Honours), LLB (Shariah) (First Class), Master of Comparative Laws (MCL) and Ph.D in Law. She is actively involved in various Islamic Financial Institutions locally and internationally as the Shariah Advisor. She has spoken extensively in conferences, workshops and trainings on various Islamic Finance issues. Her area of expertise includes legal and regulatory aspects of IBF, Shariah governance, fiqh muamalat, takaful, waqf, zakat and many others. She has published books on Islamic Banking and Takaful, Islamic Banking under Malaysian Law, Islamic Banking Cases and Commentaries, Corporate Governance of Islamic Financial Institutions, and Remedies for Default in Islamic Banking. She is an active researcher and author for more than 80 articles in local and international journals. She received awards for her contribution in Islamic Finance such as Top 10 Women in Islamic Finance (2013); Most Talented Women Professional in Islamic Banking (2014); Women of Distinction in Islamic Finance and Law (2016); Distinguished Woman in Management (2017); 100 Influential Women in Islamic Finance (2017) and recently was listed no. 5 of The Top 50 of Most Influential Women in Islamic Finance (2018).
Ahmad Nazri bin Ismail
Head, Group Shariah Risk Management, RHB Banking Group
Ahmad Nazri is currently the Head - Group Shariah Risk Management at RHB Banking Group covering RHB Islamic banking operations, RHB Bank Singapore (Islamic), RHB Bank Labuan, RHB Asset Management, RHB International Islamic Asset Management, RHB Securities, RHB Investment Bank, PT RHB International Islamic Asset Management (Indonesia), PT RHB Sekuritas (Indonesia) and RHB Trustees. His other work experience includes Treasury Dealer, Bank Islam Berhad; Treasury Dealer, AmInvestment Bank Berhad and Senior Executive; Securities Commission Malaysia. Ahmad Nazri has developed a wealth of technical experience within the areas specifically related to Islamic Finance, Treasury (FX, Derivatives & Structured Products), Risk Management and Capital Market Regulations
Muhammad Izzam Khazar
Head - Shariah Center of Excellence, Maybank Islamic
Prior to joining Maybank Islamic, Muhammad Izzam served as Shariah Manager in Noor Investment Group, Noor Bank, Noor Takaful, Noor Awqaf (Dubai) and Al Rajhi Bank Malaysia. He was the Shariah Advisor for Bena Capital (California, USA), and BYT Technologies (Singapore). He achieved his Masters in Islamic Banking, Finance and Management from University of Gloucestershire (UK), Bachelors in Shariah Law from Al Azhar University (Egypt), Usul Fiqh post study from Fatah Islami Institute (Syria) and Diploma in Syariah Law from Kusza (Malaysia). He received his training in Fiqh and Usul Fiqh from a number of eminent scholars such as Sheikh Prof Mohd Said Ramadan Al-Bouti.
Muhammad Izzam also managed the issuance of more than hundreds of Shariah decisions to banks while supervised various treasury, retail and corporate transactions including more than 60 syndicated financing and Sukuk in Islamic Capital Markets. His audit experience with 28 Sharia Audit exercises in Malaysia and UAE made him lead the Sharia Audit Integration into Noor Bank Internal Audit Program. He is the course trainer in Islamic finance where he has conducted more than 90 sessions across a number of countries including United Arab Emirates, Malaysia, United Kingdom, Indonesia, India, Morocco, Saudi Arabia and Germany.
For enquiries please contact:
Mathias Sosovele
Account Manager, REDmoney Seminars
[email protected]
Direct Line: +603 2162 7800 ext 25
Normariya Sariman
Account Manager, REDmoney Seminars
[email protected]
Direct Line: +603 2162 7800 ext 44
Ramesh Kalimuthu
Events Sales Director
[email protected]
Direct Line: +603 2162 7800 ext 65
Fax: +603 2162 7810
For sponsorship & speaking opportunities:
Andrew Tebbutt
Managing Director
[email protected]
Direct Line: +603 2162 7802
For marketing and media enquiries
Anna Rozana Ramli
Marketing Director
[email protected]
Direct Line: +603 2162 7800 ext 22
