The Securities Commission Malaysia will host the 4th International Islamic Capital Market Forum (IICMF) in Kuala Lumpur on 1 July 2010 themed “Sukuk: Transferring the Best Practices.”
The lustre of sukuk appeared after 2002 and was at its brightest in 2007 when global sukuk issuance totalled US$47 billion. Sukuk was then perceived as the only gem in Islamic finance.
Global sukuk issuance has risen from about US$15 billion to around US$23 billion in 2009. Asia has been a major contributor to the revival and the recovery has also attracted new and non-traditional Islamic jurisdictions.
Following the 2008 financial turmoil, the resultant high-profile sukuk defaults were timely wake-up call for the industry.
There is enormous potential for the global sukuk market to resume its growth after the financial crisis. Find out the strategies for raising capital in the next expansion phase of sukuk.
Examine how to strike a balance between meeting Shariah requirements and reconciling issues related to accounting, taxation, regulatory, legislations and ratings.
Look into the imperative features of an enhanced Shariah governance framework for new jurisdictions that are opening their markets to Islamic finance.
Assess some workable solutions towards improving the Islamic finance framework to ensure that the Islamic finance industry would continue to grow healthily and withstand any shocks in the global financial market.
Gain more knowledge about the high-profile sukuk defaults and the unique characteristics of the defaults in the US, Dubai and Malaysia.
Find out what is the ideal portfolio mix for Islamic financial institutions.
Part 1: Sukuk Framework
Regulatory Framework – Meeting Cross-border Needs
- Striking a balance between Shariah requirements and issues related to accounting, taxation, regulatory, legislations and ratings.
- Nourishing investors’ need for greater transparency and governance.
- Enhancing key processes as well as risk management in Islamic finance to ensure that the industry continues its unabated growth and withstands shocks in the global financial market
Working Towards an Accommodative Legal Framework
- Recent legal judgments on transactions involving Islamic finance structures have created consternation over the future and sustainability of the industry.
- Applications of Shariah that lacked legal clarity have resulted in disputes in Islamic transactions.
- The feasibility of engaging Shariah scholars to act as advisers in legal disputes involving Islamic structures.
Islamic Accounting Standards – Convergence, Harmonisation or Exclusivity
- The International Accounting Standards Board issues the International Financial Reporting Standards (IFRS) for global users but such standards do not cater specifically for the reporting of Islamic finance transactions.
- The treatment of Islamic finance structures within the IFRS framework.
- Malaysian Accounting Standards Board (MASB)’s approach in accommodating Islamic finance.
Strengthening the Shariah Governance Framework
- Various approaches in Shariah governance taken by different countries.
- Lessons learnt from the global crisis and steps to strengthen Shariah governance.
Maqasid Shariah – Basis for Meeting Islamic Finance Needs
- The eternal and unchanging aims of Islamic finance.
- Shariah considerations in cases of daruriyyah (necessity) or hardships.
- The broad roles and principles of Shariah affecting maqasid Shariah in Islamic finance and the need to balance hajiyyat (requirements) with daruriyyah.
Part 2: Specific Issues in Sukuk
Global Sukuk Issuance Poised for Boost from New Legislative and Regulatory Initiatives
- Outlook for the global sukuk market
- Emergence of new Islamic financial centres with new legislation and regulations to accommodate sukuk issuance.
- Various regulatory undertakings in the Gulf Co-operation Council countries, Europe and Asia.
Musharakah and Mudharabah Applications – Issues in Fiqh and Legal Practice
- Analysis of the fiqh and legal issues in musharakah and mudharabah within the scope of English law and Accounting and Auditing Organization for Islamic Financial Institutions (AAOIFI) standards.
- Possible solutions to overcome the issues.
Diversification of Portfolio Through Sukuk
- Reasons behind the preference of Islamic financial institutions in the Middle-East and North Africa (MENA) for investments in properties, term-financing and commodity murabahah instead of sukuk.
- Challenge on maturity mismatches as well as a non-diversified portfolio.
- An ideal portfolio-mix for Islamic financial institutions.
Sukuk Defaults – A Dialogue on Various Jurisdictions
- Do sukuk defaults pose a far greater problem than bond failures?
- Understand the unique features of the sukuk defaults in the US, Dubai and Malaysia.
Best Practices in Sukuk
This panel session will explain the different perspectives and objectives of the Shariah bodies, the standard setting bodies, lawyers and the rating agencies.
Local and international experts in the Islamic finance industry, including regulators, legal practitioners, standard setting bodies and Shariah scholars, will share their views and experiences in sukuk and also the lessons learnt from the defaults.
- Full price: RM750 per pax
- Early birds (First 50 participants)/RM500 per pax
- Group discount (3 pax or more from the same organisation)/RM635 per pax
- CMSRL licence holder/RM600 per pax
- Students of public universities in Malaysia/RM150 per pax
- * Participants are only eligible for one type of discount.
To avoid disappointment, please register early as only limited seats are available.
Mark this event in your diary now.
For further details, email us at [email protected].