|Background||Members of the Task Force||Updates|
|Press Releases||Presentations & Papers||Links|
The Executive Committee of IOSCO gave a mandate to form a task force on Islamic capital markets at the 2002 IOSCO annual conference and meetings in Istanbul, Turkey on 23 May 2002.
With the Islamic capital market increasingly becoming a significant component of international global capital markets, its stability and proper regulation is a significant issue in the interest of the wider global financial infrastructure.
Furthermore, IOSCO considered that it would be timely to begin an appraisal of the status and level of development of Islamic capital markets around the world, bearing in mind the following circumstances:
- Growth prospects of the Islamic capital market;
- Lack of platform for Islamic capital market regulators to exchange views;
- IOSCO’s profile as a leading international grouping of securities regulators and scope of objectives of securities regulation; and
- Increasing international recognition given to Islamic banking by international organisations.
In light of these issues, IOSCO’s Executive Committee endorsed a fact-finding study to be undertaken via the task force. The task force aims to create greater awareness of Islamic financial products and activities globally, and has been entrusted to undertake a fact-finding study toâ€“
- assess the state of play and potential for development of Islamic financial products and activities;
- determine any specific and/or general regulatory gaps in the area; and
- enhance the level of knowledge of IOSCO member jurisdictions of financial products and activities based on Islamic principles offered across the globe.
The task force is chaired by the SC and comprises the following IOSCO member jurisdictions.
(Chair of task force)
|Australia||Australia Securities and Investments Commission|
|Indonesia||Indonesia Capital Market Supervisory Agency|
|Jordan||Jordan Securities Commission|
|Nigeria||Securities and Exchange Commission|
|South Africa||Financial Services Board|
|Thailand||Securities and Exchange Commission|
|Turkey||Capital Markets Board|
|Italy||Commissione Nazionale per le SocietÃ e la Borsa|
|UK||Financial Services Authority|
|US||Securities and Exchange Commission|
- The task force was established.
- It comprises 11 IOSCO member countries namely Australia, Indonesia, Jordan, Malaysia, Nigeria, South Africa, Thailand, Turkey, Italy, the UK and US.
- The task force had its inaugural meeting in Kuala Lumpur, Malaysia at the conclusion of the emerging Market Committee (EMC) meetings hosted by the SC.
- At the meeting, members deliberated on the terms of reference of the task force and endorsed a questionnaire drawn up to facilitate a fact-finding exercise on the global Islamic capital markets.
- Iqbal Khan, Chief Executive Officer of HSBC Amanah Finance, Dubai shared his views on the prospects and challenges of the global Islamic debt capital market with members at the meeting.
- The final draft of the questionnaire was distributed to members of the task force, selected IOSCO member countries and various external parties for their responses.
- The questionnaire sought to provide a survey of different jurisdictions’ experiences of Islamic financial products and activities.
- It included questions on market overview, size and profile of the markets, regulation and compliance, market foundations such as tax system and accounting framework), market development and international issues.
- The responses were due by mid-January 2003.
- The task force held its second meeting in Melbourne on 16 February 2003.
- As part of the process of enhancing knowledge on the Islamic capital market, Rodney Wilson, Professor of Economics at the University of Durham, was invited to address task force members on his views regarding the regulatory challenges posed by Islamic capital market products and services.
- Task force members were briefed on the progress of the mandate and the overview of the proposed outline of the report.
- The task force held its third meeting on the sidelines of the IOSCO Annual Conference in Seoul on October 17 2003.
- The task force completed its mandate and publicly released the Islamic Capital Market Fact Finding Report, Report of the Islamic Capital Market Task Force of the International Organization of Securities Commissions.
- SC: Active engagement key to strengthening international confidence in Malaysian capital market
(English / Bahasa Malaysia)
(1 November 2002)
- SC to lead international task force on Islamic capital market â€“ SC Chairman re-elected to chair Asia-Pacific Regional Committee
(English / Bahasa Malaysia)
(30 May 2002)
(Note: You need to have Acrobat Reader to view the pdf files. If you do not have Acrobat Reader, you may download it first.)
- Chapter Two: The Evolution of the Islamic Financial System (pdf â€“ 75.7kb)
- The Economics of Mutual Funds: An Islamic Approach (pdf â€“ 247kb)
- Parallels Between Islamic and Ethical Banking (pdf â€“ 68.5kb)
- Regulatory Challenges Posed by Islamic Capital Market Products and Services
- Standardising Islamic Financial Products (pdf â€“ 34.2kb)
- Glossary of Islamic Capital Market Terms (pdf â€“ 76kb)