Islamic Finance

The DFSA’s regulatory framework is based on principles of transparency, integrity and efficiency. We have used these to create an enabling regulatory framework for the Islamic financial services industry. With the advantage of being able to design our regime from inception using international standards, we have been able to create a cohesive and balanced regulatory framework, rather than bolting Islamic finance onto an existing conventional regulatory regime.

Central to the DFSA’s approach to Islamic finance is our belief in risk-based regulation. Many of the risks in Islamic finance have their counterparts in conventional finance, and we believe they should be treated similarly. So our regime for Islamic finance is integrated with that for conventional finance, but with explicit recognition of the structures and risks of Islamic finance, where these are different.

We apply internationally accepted standards and principles; in Islamic finance those of the Accounting and Auditing Organisation for Islamic Financial Institutions (AAOIFI) and the Islamic Financial Services Board (IFSB). A number of DFSA employees are actively involved in the working parties and committees of these bodies. As members of the Asian-Oceanian Standard-Setters Group we contributed to its research paper on financial reporting issues for Islamic finance and can be accessed here.
 

DFSA speeches on Islamic finance

• Paul M Koster at the World Takaful Conference, 13 April 2011, "Effective Regulatory Initiatives to Strengthen Industry Foundations" - click here
• Paul M Koster at the Annual Conference of the Emirates Securities and Commodities Authority, 25 January 2011, "Reshaping the Supervisory Role in the Financial Sector: The Case of Holland" - click here
• Paul M Koster at the IFSB Summit, 4 May 2010, "New Framework for Liquidity Management for Islamic Financial Institutions" - click here
• Paul M Koster at the IFSB Summit, 23 November 2009, "Implications of International Regulatory Change for Islamic Finance" - click here
• Paul M Koster at the IFSB Summit, 8 May 2009, “Direction of Development Policies” – click here
• Paul M Koster at the World Takaful Conference, 14 April 2009, “Laying the Foundations for Growth” – click here
• Peter Casey on Islamic Capital Markets Regulation, 19 May 2009 – click here
• Simon Gray on Applying for IFSB Basel II Framework to Ensure a Bank's Capital Adequacy - click here

 

DFSA publications on Islamic finance

• Leaflet on Islamic Finance Regulation in the DFSA – click here
• Simon Gray on Takaful Funds in Emerging Markets Report, June 2009 – click here
• DFSA in Action – Volume 2, June 2008 – article on p1, “DFSA and Hong Kong launch Islamic finance initiative” – click here
• DFSA in Action – Volume 1, December 2007 – article on p4, “Regulation key for Islamic finance industry” and article on p5, “Best Regulator for Islamic Funds” – click here
• DFSA Business Plan 2009/2010 – view on Islamic finance regulation on p21 and Focus Area under Strategic Themes on p28 - click here
• DFSA Speeches and Presentations given at events held at Clare College, Cambridge:
  • DFSA Approach to Regulating Islamic Finance
  • DFSA's Approach to Regulating Islamic Finance
  • Impact of the Financial Crisis on Islamic Finance
  • Impact of the Financial Crisis on Islamic Finance
  • Implications of International Regulatory Change
  • Islamic Finance
  • Liquidity Management
  • Prudential Rules for Islamic Banking

 

Authorised Firms doing Islamic finance business

To access the Public Register

• Under Firm Type, select Authorised Firms
• Under Endorsement, select either (or both) Operating an Islamic Window or Islamic Financial Institution
• Click on the Search button at the bottom of the page
• Click on the name of a firm to see more details

Click here to access the Public Register.