Shariah Compliance Function

AAOIFI draft standard for creating and managing a Shariah compliance function

Accounting and Auditing Organization for Islamic Financial Institutions draft standard provides guidance for establishing and managing a robust Shariah compliance function within Islamic Financial Institutions (IFIs) and for standardizing the practices across the globe. Includes guidelines on establishing the Shariah compliance function with regard to the responsibilities and key considerations, along with the internal controls and processes within IFIs. Also details structure, scope and functioning of a Shariah compliance department, key functions and reporting lines. 

Publisher: International Organizations     Release date: Oct 2017    

Type: Consultative, discussion and issues paper

Topics: Islamic finance, Compliance function

Sectors: Banking, Insurance, Securities

Deadline for comments: Nov 2017

Prudential Standard on Risk Management

APRA prudential standard on risk management for the banking and insurance industries

Australian Prudential Regulation Authority standard sets out key requirements of banks and insurance companies: i) maintain a risk management framework that is appropriate to the size, business mix and complexity of the institution or group; ii) maintain a board-approved risk appetite statement; iii) maintain a board-approved risk management strategy that describes the key elements of the risk management framework that give effect to the approach to managing risk; iv) maintain a board-approved business plan that sets out the approach for the implementation of the strategic objectives of the institution or group; v) maintain adequate resources to ensure compliance with this prudential standard; and vi) notify APRA of a significant breach of, or material deviation from, the risk management framework, or that the risk management framework does not adequately address a material risk.

Publisher: National Regulators     Release date: Jul 2017     Country: Australia

Type: Standard

Topics: Risk management, Compliance function, Corporate governance

Sectors: Banking, Insurance