Accounting and Auditing Organization for Islamic Financial Institutions (AAOIFI) held the 10^th and final meeting of the current term of its Public Interest Monitoring Consultative Committee (PIMCC / the committee) on 29 July 2026 via video conferencing.

During the meeting, the PIMCC reviewed and discussed one exposure draft (ED) of a governance standard (GS), appendices of another ED of a GS issued by the AAOIFI Governance and Ethics Board (AGEB) and one ED of a financial accounting standard (FAS) issued by the AAOIFI Accounting Board (AAB), namely:

• ED of GS _ “Principles of Assessment of Necessity for Obtaining Conventional Reinsurance by Takaful Institutions”, which outlines the fundamental governance principles and internal controls governing the circumstances in which a Takaful institution may utilise conventional reinsurance as a means of managing risk on the basis of necessity;

• Appendices B and C of the ED of GS _ “Development and Governance of Shari’ah-Compliant Benchmark Rates”. The exposure draft had previously been reviewed by the PIMCC, while the committee’s discussion at this meeting focused on appendices B and C, which provide illustrative models for developing and applying Shari’ah-compliant benchmark rates based on macro-level economic indicators and Islamic financial market data; and

• ED of FAS _ “Direct Costs: Determination, Attribution and Reimbursement”, which sets out principles and requirements for identifying and determining direct costs, attributing them to the relevant transactions or arrangements, and establishing the basis for their reimbursement in line with the requirements of Shari’ah principles and rules.

The PIMCC members expressed their appreciation for the efforts of the AGEB, the AAB, the respective working groups and the AAOIFI secretariat in developing the exposure drafts. They also provided comments and recommendations to strengthen the proposed requirements and address relevant public-interest considerations, which will be presented to the respective working groups and boards as part of the standards-development and finalisation process.

Mr. Omar Mustafa Ansari, Secretary General of AAOIFI, stated: “I would like to express my sincere appreciation to the PIMCC members for their dedication, valuable contributions and continued commitment to AAOIFI’s public-interest mandate. Their comments and recommendations have contributed to enhancing the quality, clarity and practical relevance of the proposed standards”. He added: “The new term of the PIMCC will commence shortly upon completion of the relevant due process, and we look forward to the committee’s continued valuable contribution to AAOIFI’s standards-development process”.