The Accounting and Auditing Organization for Islamic Financial Institutions (AAOIFI) in collaboration with the Islamic Financial Services Board (IFSB) held a virtual public hearing session on Wednesday, 12 May 2022 for the Exposure Draft (ED) of the joint IFSB-AAOIFI standard, the ‘Revised Shari’ah Governance Framework for Institutions Offering Islamic Financial Services’ (ED-RSGF), in line with required due process for the development of standards.

The 5-hour virtual public hearing, attended by more than 200 industry experts from around the world, sought constructive and practical feedback on the ED.  The ED-RSFG provides a revised set of guiding principles and rules on the key components of a sound and effective Shari`ah governance framework for Institutions Offering Islamic Financial Services (IIFS) and applies to Islamic banking (including Islamic windows), takāful (Islamic insurance) and Islamic capital market sectors.

The Chairman of the AAOIFI Governance & Ethics Board (AGEB), Mr. Farrukh Raza, in his opening remarks, expressed his appreciation to all the experts and members who devoted time and effort to the development of the ED-RSGF. The ED was then presented by Mr. Omar Mustafa Ansari, Secretary-General of AAOIFI, who also expressed his appreciation to the IFSB’s Technical Committee, AGEB, the joint working group members, the project manager and the joint Shari’ah committee for their tireless efforts and continuous dedication to serve the best interest of the global Islamic finance industry. He further thanked the attendees for their active participation in the public hearing and for devoting their valuable time to share feedback on this important standard.

Two additional public hearings are planned to be conducted by the IFSB on 15^th and 20^th June 2022, in Arabic and English respectively. Further details will be announced through the IFSB and AAOIFI websites and social media platforms.

Industry feedback received during the public hearings in the form of questions, comments and recommendations will be compiled and presented to the respective IFSB-AAOIFI joint working group, the IFSB Technical Committee and the AGEB for further discussions and deliberation before the final issuance of the standard.

While the ED-RSGF is in the public consultation stage, those who are interested in providing comments on the ED in writing may still do so by sending their feedback to governance@aaoifi.com and public_consultation@ifsb.org before 23 June 2022.

The ED of the “IFSB-AAOIFI Revised Shari’ah Governance Framework for Institutions Offering Islamic Financial Services” can be accessed through the IFSB and AAOIFI websites. The Arabic version of the ED will also be made available shortly on the respective websites.