ASSIF platform: One step forward - IFN

ASSIF platform: One step forward

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UK: The new association of Islamic scholars announced in the UK last week plans to provide a platform for scholars to interact with each other, but ambiguity remains as board member Dr Mohamed Akram Laldin confirms that the body will not offer universal qualifications or standards and will not seek to play a regulatory role. Speaking to Islamic Finance news Akram, who is the executive director for the Malaysia-based International Shariah Research Academy for Islamic Finance (ISRA) and one of the world’s leading Shariah scholars, explained that the primary goal of the new body is to: “Provide a platform for scholars to connect with each other from all over the world; to interact with each other and to share ideas and concerns.” The association will have a governing council of between 10-30 scholars from leading Islamic finance jurisdictions: with a number of prominent scholars already confirmed including Akram from Malaysia, Sheikh Nizam Yaquby from Bahrain, Abdul Sattar Abu Ghuddah from Syria and Mohamed Ali Elgari from Saudi Arabia. “We do have certain concerns sometimes, especially when it comes to cross-border transactions, when it comes to mutual respect for Shariah views,” noted Akram. “We need to sit down, exchange opinions and compare ideas with other scholars in order for us to come to terms on how to deal with certain issues in the market.” The comprehensive guidelines in place by agencies such as AAOIFI already regulate Shariah standards, but are not universally accepted or enforced in all jurisdictions. Domestic bodies such as the Malaysia-based Association of Shariah Advisors in Islamic Finance (ASAS) also play a valuable role but have hitherto acted under a solely local mandate, while many countries do not have a national supervisory scholars body at all. The new association hopes to promote a more united global approach by promoting the individual interaction of scholars, said Akram. “Different jurisdictions have different needs and regulatory requirements in terms of Shariah advisory services in their countries. There are different models available across the globe. So this body is very much for the interaction of individual scholars with each other.” It has been suggested that the Association of Shariah Scholars in Islamic Finance (ASSIF), a UK-registered charity, would act as a self-regulating professional association that would work towards developing a unified set of training standards and qualifications. Its deputy president, Mufti Abdul Qadir Barkatullah, told Islamic Finance news that: “ASSIF is considering issuing a set of vigorous code of best practice and code of conduct for the profession and industry of Shariah advisory globally. [We also] wish to define the acceptable qualifications and training for entry level as well as for continuous development of the profession.” Should this be the case, the association would have achieved a giant step forward for the industry, which has a history of controversy over the issue of scholar regulation and qualification. However according to Akram, this may be running a little too far too fast. He emphasized that: “We will not be issuing any standards. ASSIF will work with the Islamic Finance Council of the UK (IFC) in order to develop a training program for scholars, which will be available both in the UK and globally. But there is no intention of issuing a set of common standards yet.” ASSIF plans to work closely with the IFC in order to train scholars, particularly new scholars, an issue which Akram believes is vital. “We have nothing in between the older and younger generation. We need to make sure that the continuity is there, so now the focus is very much on training the new breed of scholars so that there is no gap in service.” However, he emphasized that the association has no plans to seek a regulatory role, and will instead rely on the support of local regulatory bodies with the eventual goal of achieving an umbrella organization under which all the individual scholar associations in each country can operate. “This is not a regulating body for the scholars and will not be issuing universal standards or qualifications. It is a platform on which they can interact with each other, and enhance cooperation between ASSIF and other bodies in other parts of the world. These are the two focus areas for the moment.” Although the move is a positive step forward for the industry, it looks as though clarification may perhaps still be needed in terms of its primary goals.