The Accounting and Auditing Organisation for Islamic Financial Institutions (AAOIFI) held the 33^rd meeting of its Governance and Ethics Board (AGEB / the board) recently via video conferencing.

The board discussed and approved the issuance of the governance standard (GS) 17 “Shari’ah Compliance and Fiduciary Ratings of Sukuk and Other Islamic Finance Instruments”. The standard aims to introduce and set out principle-based guidance on Shari’ah compliance and fiduciary ratings of Sukuk and other Islamic finance instruments and it is a continuation of AAOIFI GS 10 “Shari’ah Compliance and Fiduciary Ratings for Islamic Financial Institutions”.

The board also reviewed and finalised the exposure draft (ED) of GS on “Governance and Management of Investment Accounts”. The proposed standard sets out a governance framework for the management of investment accounts and other similar participatory instruments. The board felt the need to develop the standard in order to safeguard the interest of the funds providers (investment account-holders), from both, the Shari’ah compliance and the IFIs’ fiduciary responsibility perspective.

The chairman of AGEB, Mr. Farrukh Raza, at this occasion stated that “I am pleased to announce that the board approved the issuance of GS 17 “Shari’ah Compliance and Fiduciary Ratings of Sukuk and Other Islamic Finance Instruments” and the ED of GS on “Governance and Management of Investment Accounts”.  He added that “the public hearings for the ED on GS “Governance and Management of Investment Accounts” will be held in the upcoming months and I would like to invite the industry stakeholders to share their valuable feedback and comments”.

Mr. Omar Mustafa Ansari, Secretary General, AAOIFI stated that “I am thankful to the board and the relevant working group members for their time and contributions in finalising GS 17 “Shari’ah Compliance and Fiduciary Ratings of Sukuk and Other Islamic Finance Instruments” and the ED of GS on “Governance and Management of Investment Accounts”. He added that “We will publish GS 17 and the ED at AAOIFI’s website shortly after the completion of the due process”.