REGULATORY AND COMPLIANCE FRAMEWORK IN ISLAMIC

FINANCE UNDER IFSA 2013

Dates and Time: 12-13 October 2015 (Monday-Tuesday)

9:00am - 5:30pm

Venue: International Institute of Advanced Islamic Studies (IAIS) Malaysia

Jalan Ilmu, Off Jalan Universiti, 59100 Kuala Lumpur.

Organised by: Conducted by the Author of “IFSA 2013: Commentaries on

Selected Provisions”

TRAINING PROGRAMME

1. To expose the participants to the regulatory framework of Islamic finance in Malaysia with special reference to Islamic Financial Services Act (IFSA) 2013.

2. To equip the participants with an understanding of the application of laws, rules and standards governing the Islamic finance industry in Malaysia and internationally.

3. To expose the participants to the issues and challenges arising from the current regulatory regime for Islamic finance industry domestically and internationally.

4. To provide a platform of discussion for the participants on issues related to the regulatory framework for Islamic finance.

OBJECTIVES OF THE TRAINING

At the end of the training, participants will have a clear understanding of the following:

• The regulatory framework of Islamic finance.• The applicable laws, rules and standards in Islamic finance.• Dispute resolution mechanism in Islamic finance.• Court procedures relating to Islamic finance disputes.• Issues and challenges that have arisen in the Islamic finance

industry in Malaysia and at the international level.

LEARNING OUTCOME

TRAINING PROGRAMME

DAY 1 – Monday, 12th October 2015

08:30 – 09:00 Registration & Refreshment

09:00 - 10:30 SESSION 1

Introduction• Malaysian Banking & Takaful Legal History• Islamic Banking in Malaysia

Overview of International Islamic Finance Regulatory Framework• Bank of International Settlement • International Association of Insurance Supervisors• Basel III• International Chamber of Commerce• Financial Action Task Force• Foreign Account Tax Compliance Act• International Organization of Securities Commissions• World Trade Organization• US Banking & Securities Regulations • European Conventions and Treaties • Roles of Islamic Finance Standards Issuance Bodies

10:30 – 11:00 Coffee Break & Networking

11:00 - 12:30 SESSION 2

Part 1: Selected Issues on the Challenges Faced by the Islamic Financial System in the Global Market• Position of Shariah Law• Jurisdiction• Party Autonomy Rule• Pacta sunt servanda• ConflictofLaws• Choice of Governing Law• Arbitration Part 2: Case Study • Analysis of International Cases on Islamic Finance

12:30 - 14:00 Lunch and Zuhur Prayer

14:00 - 15:30 SESSION 3

Part 1: Regulators in Islamic Finance

• Al-Quran & Al-Sunnah• Central Bank of Malaysia • Securities Commission • Labuan Offshore • Ministry of Finance Part 2: Legal and Regulatory Framework of Islamic Financial Institutions in the Malaysian Environment

• Operationalisation • Oversight Functions• Documentations, Internal Policies & Procedures• Risk Management• Information Disclosures • Products Structuring Part 3: Relevant Acts Governing Islamic Financial Institutions

• Islamic Financial Services Act (IFSA) 2013 • Financial Services Act (FSA) 2013• Central Bank of Malaysia Act 2009 • Securities Commission Act 1993 • Capital Market and Services Act 2007 • Development Financial Institutions Act 2002 (Act 618) • Anti-Money Laundering and Anti-Terrorism Financing Act 2001

(Act 613) • Cooperative Societies Act 1993• Tabung Haji Act 1995• Government Investment Act 1983 & its Amendment in 2005

15:30 - 16:00 Coffee Break & Networking

16:00 - 17:00 SESSION 4

Part 1: Institutions Regulated under Bank Negara Malaysia (BNM)

• Banking and Deposit-Taking Institutions (Sector 1) • Insurance and Takaful (Sector 2) • Money Services Business (Sector 3) • ElectronicMoneyandNon-BankAffiliatedCharge&Credit

Card (Sector 4) • Designated Non-Financial Businesses and Professions

(DNFBPs) & Other Non-Financial Sectors (Sector 5)

Part 2: Analysis of Malaysian Cases on Islamic Finance

17:00 END OF DAY 1

DAY 2 – Tuesday, 13th October 2015

08:30 – 09:00 Refreshment

09:00 – 10:30 SESSION 5

Part 1: Judiciary and Dispute Settlement Mechanisms

• Malaysian Court• Landmark Cases in Islamic Banking • Court-Annexed Mediation• KLRCA-AALCO • Ombudsman • Arbitration Avenues around the Globe• How to settle cross border dispute according to regions• Mediation • Arbitration • Expert Determination Part 2: Case Study • Analysis of Arbitration cases related to Islamic Finance

10:30 – 11:00 Coffee Break & Networking

11:00 – 12:30 SESSION 6

Shari’ah Compliance as Required by IFSA 2013 • Islamic Financial Services Act (IFSA 2013).• The Impacts of IFSA 2013 :

i. Salient features of IFSA 2013 ii. Objectives of IFSA 2013iii. Outlining the Financial Ombudsman Scheme as a Key

Component of IFSA 2013 iv. What this scheme means for banks and customers v. Legal Provisions as set out by the Financial Ombudsman

Scheme vi. Establishment of a system for the effective and fair

handling of complaints vii. Procedures for the resolution of disputes in connection

withfinancialservicesviii. Ensuring full compliance and cooperation with the scheme

Powers of Bank Negara Malaysia Relevant to IFSA 2013 ix. Enforcement Issues and Penalties

12:30 - 14:00 Lunch and Zuhur Prayer

14:00 - 15:30 SESSION 7

Issues and Challenges in the Implementation of Islamic Financial System

• Legal• Accounting • Shariah • Operationalisation • Risk • Harmonisation

15:30 - 16:00 Coffee Break & Networking

16:00 - 17:30 SESSION 8

Recent Cases & Statistics in Islamic Finance

• Liability of Shariah Advisers • Recover Issues• Position of Garnishee Proceedings• The Problems in Equity Financing - Special Reference to

Musharakah Mutanaqisah

17:30 END OF DAY 2

Dr Hakimah Yaacob is currently the Head of Economics, Finance, Awqaf & Zakah Unit of the International Institute of Advanced Islamic Studies (IAIS) Malaysia. She has a broad professional experience in the Islamic finance industry, academia and consulting. Her research focus is on Islamic finance, legal ethics, restorative justice, Alternative Dispute Resolution (ADR), regulatory framework and Islamic legal drafting. She is a certified

EXPERT COURSE INSTRUCTORS

mediator and a member of Chartered Arbitrators, UK and certified mediator of Australian Accord Group. She has been appointed as a court expert in Islamic finance cases in Malaysia and Hong Kong and is an expert witness in cases of Musharakah structures. She is also the author of ‘Alternative Dispute Resolution in Cross Border Islamic Finance Cases’ published by ISRA, Bank Negara Malaysia. Dr Hakimah’s consulting assignments include drafting the regulatory framework for Islamic Finance in Maldives and China. Dr Hakimah is actively involved with advising on Shariah compliance Halal issues with World Trade Law in relation to trade and services.

Apnizan Abdullah holds the LL.B (Honours) and Master of Comparative Laws (MCL) from the International Islamic University Malaysia (IIUM) obtained in 2003 and 2004 respectively. Prior to joining IAIS, she was a lecturer at the Universiti Tunku Abdul Rahman (UTAR) and the University of Malaya. She was also a researcher at the International Shariah Research Academy for Islamic Finance (ISRA). She obtained her Chartered Islamic Finance Professional certificate

(CIFP) from the International Centre for Education in Islamic Finance (INCEIF) in 2011 and her LL.B (Shariah) from the IIUM in 2014. She has written articles in international journals, bulletins and magazines and conducted trainings on regular basis. She currently serves the International Institute of Advanced Islamic Studies (IAIS) Malaysia as a Research Fellow.

PARTICIPANT RM 1,000EARLY BIRD PROMOTION(before 21st September 2015)

RM 900

STUDENT RM 500

Account Name: International Institute of Advanced Islamic Studies (IAIS) MalaysiaAccount No: 8600339794Bank Name: CIMB Islamic Bank Berhad

Payment must be made before 5th October 2015

For more information and/or to register, please visit www.iais.org.my/ift2015

Email: razi@iais.org.my Phone: 03 79569188

The course will benefit anyone who may have a potential exposure to the implications of IFSA 2013. In particular:

• Bank staff • In-house counsel • Researchers• Lecturers • Shariah compliance officers• Lawyers • Islamic corporate and retail bankers • Risk managers • Shariah professionals, including Shariah auditors and compliance • Bank management and directors

WHO SHOULD ATTEND THIS TRAINING?

FEES