OPINION - AAOIFI's Perestroika By Bernardo Vizcaino, CAIA

With increased calls for the Islamic finance industry to review (and reform) its governance framework, AAOIFI finds itself as a key participant of this process. A perestroika in the making.

The increased scrutiny revolves around the role of scholars and structure of Shariah Supervisory Boards. This includes issues pertaining to concentration of board seats in a handful of scholars, an individual holding seats in competing organizations (regardless of concentration), greater accessibility/understanding of the rationale behind rulings, as well as cultivating a wider pool of experienced professionals. While the debate has focused on the potential conflicts of interest, the next step would be to determine what mechanisms can be implemented to strengthen the overall system. READ FULL ARTICLE HERE



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Source : http://www.opalesque.com/OIFIArticle/98/Bernardo_Vizcaino_CAIA692.html - Dec 16, 2010