Objective

The objective of PIMCC is to advise and provide its observations to AAOIFI’s Board of Trustees and technical boards (excluding the Shari’ah board) regarding AAOIFI’s responsiveness to public interests as incorporated in its standard setting process (specifically accounting, auditing, governance and ethics standards) and outcome.

Key responsibilities of PIMC

Under the authority provided by the BOT, in line with AAOIFI’s strategic initiatives, the PIMCC shall have an oversight (as an advisory body) on the functioning of the AAOIFI Accounting Board and AAOIFI Governance and Ethics Board (and any other technical board that AAOIFI decides to establish in the future) with respect to the inclusion of public interest. PIMCC’s mandate includes the standards and other technical pronouncements issued by these boards including financial accounting standards, auditing standards, governance standards, codes of ethics and related guidelines, guidance notes and technical releases.

PIMCC has the responsibility to make the following determination with respect to the assessment of public interest:

1. are matters of public interest being duly considered when drafting the standards?
2. are there any major areas of public interest which are not currently addressed by the standards?
3. do the benefits of the standard outweigh the costs for the society at large?
4. has the right process of standard setting been adopted?
   • does it ensure transparency? (adequate public consultation, due consideration to the comments received, providing bases for conclusion, etc.)
   • is it independent? (no conflict of interest, special interest groups not allowed to influence, independence in funding arrangements, etc.)
   • is due process being followed?
   • is it inclusive (of the relevant stakeholders and the wider base)?
5. are the right people involved in setting the standards? (competence and integrity)
6. is the right process actually being implemented effectively?

Nomination criteria and pre-conditions

The PIMCC shall consist of 7 members including the Chairman. This will include three representatives from regulatory bodies and four independent experts[1]. Members of the PIMCC shall possess the following attributes:

1. extensive knowledge of financial services industry (conventional and/or Islamic) demonstrated by at least 15 years of relevant experience including at least 5 years in a senior position;
2. basic understanding of Shari’ah principles as applicable to Islamic banking and finance;
3. demonstrable interest in and commitment to the field of Islamic banking and finance;
4. good standing, reputation and market recognition;
5. ability and willingness to devote sufficient time and effort towards the dispensation of their duties as member of PIMCC; and
6. ability to discharge the responsibilities independently, without allowing undue influence from any segment of the industry, and free from potential conflict of interest. In case of the latter, the member is expected to disclose fully to the Chairman of PIMCC and refrain from voting on such matter.

The official language of the PIMCC is English. Appointed members shall follow the Charter[2]of the PIMCC as well as the code of conduct for AAOIFI associated professionals (to be read with AAOIFI Code of Ethics). Furthermore, a member of PIMCC cannot be a member of any of AAOIFI’s technical boards at the same time. 

Track record and solvency

The nominee must have an impeccable track record of professional conduct and in social, economic and financial dealings and shall not have been associated with any illegal activity or in default of payment of dues owed to any financial institution and /or default in payment of any taxes in an individual capacity or as a proprietary concern or as a partner of any partnership firm or as a director or CEO or major shareholder of an entity.

Integrity and reputation

The nominee shall enjoy a strong reputation of integrity and honesty and shall not be subject to legal or corporate proceedings on account of charges of honesty and integrity related to any corporate or government office.

Conflict of interest

Every nominee shall at all times be independent with regards to his / her responsibilities as a member of the PIMCC. He / She shall undertake that being part of the PIMCC he / she will give all priority to the cause of Islamic finance and the objectives of AAOIFI over his / her personal and organization’s priorities. He / She shall not obtain any benefit for himself / herself, or his / her organization, solely by virtue of the membership of the PIMCC.

[1] An independent expert refers to individuals who are not associated with Islamic financial institutions as directors, employees, advisors or are in any way provide service to them. Regulatory bodies may also nominate independent experts from their jurisdiction.

[2] Nominated candidates can request a copy of the PIMCC Charter from the AAOIFI Secretariat.