DIFC hosts IIFM’s 22nd Board of Directors Meeting & Members Meeting

The 22nd Board of Directors meeting of the International Islamic Financial Market (IIFM) was hosted recently by the Dubai International Financial Centre (DIFC) in Dubai, UAE.

The meeting was attended by senior representatives of DIFC, Bank Indonesia, Central Bank of Sudan, Central Bank of Bahrain, Islamic Development Bank, State Bank of Pakistan, Ministry of Finance – Brunei Darussalam, Labuan Financial Services Authority - Malaysia, Kuwait Finance House, Bank Islam Malaysia Berhad, ABC Islamic Bank, Credit Agricole Corporate & Investment Bank, Standard Chartered Bank, National Bank of Kuwait and European Islamic Investment Bank.

Marwan Ahmad Lutfi, Deputy CEO & Head of Business Development, DIFC Authority said, “DIFC’s support for the IIFM meetings is part of our efforts to promote and support initiatives that drive standardisation in the Islamic finance industry. From its very inception, DIFC has been actively working to catalyse the development of the Islamic Finance industry. As DIFC evolves further into a global hub for institutional finance and a gateway for capital and investment in the region, Islamic finance will continue to be one of our key focus sectors.” 
The Board of Directors reviewed the completed documentation initiatives of IIFM, which include the recently launched Tahawwut Master Agreement (TMA) and the Master Agreements for Treasury Placement (MATP); and noted the importance of these standardized documentation and the critical role such master agreements play in the unification of the Islamic finance industry. The Board also thanked DIFC for hosting the final Shari’ah Advisory Panel meeting where the scholars approved the TMA. 

Mr. Khalid Hamad, IIFM Chairman & Executive Director-Banking Supervision, Central Bank of Bahrain, welcomed the Board members and thanked them for their foresightedness and guidance which is instrumental in making IIFM’s focus on standardized documentation & products for Islamic Capital & Money Market segment of the industry.
 
Mr. Ijlal Alvi, Chief Executive Officer of IIFM, mentioned that IIFM has firmly established itself as an important global body for promoting cross-border standardization of Islamic finance documentation, products & information sharing on a broad range of issues relating to the building and unification of Islamic financial market. He also reiterated that the strong support IIFM is continuously receiving from its members, Shari’ah scholars as well as the experience it has gained in the area of standardization are the key to its constant growth and progress. After the successful launches of the MATP and TMA, IIFM is now forging ahead with a number of Islamic finance documentation and product standardization initiatives, he added.

The Board members noted the important role of IIFM’s Shari’ah Advisory Panel consisting of well renowned scholars namely Shaikh Nizam Yaquby, Dr. Hussain Hamid Hassan, Dr. Abdul Sattar Abu Ghuddah, Dr. Mohammed Daud Bakar, Shaikh Essam Ishaq, Dr. Yosuef Al Shubaily, Dr. Mohammed Burhan Arbouna, Dr. Imran Ashraf Usmani and Dr. Akram Laldin for their invaluable contribution in the standardization efforts of IIFM.

The Board also noted the TMA post-launch efforts of IIFM, especially the briefing workshops which IIFM is arranging in various jurisdictions, free of cost to its members and non-members; and in creating awareness and development of hedging in Islamic finance. Alvi further added, “TMA is the building block for Islamic risk management and its launch has paved the way for law reforms as well as other benefits to financial institutions”.

The IIFM Board of Directors approved the review of MATP as good industry practice; and also noted the value addition of the MATP to the industry which is evident from the large number of institutions which have retrieved the master agreements from the IIFM website.

The IIFM management briefed the Board on Repo Working Team’s efforts in carrying out research, deliberations and developing possibilities for liquidity management tools which will be highlighted in the I’aadat Al Shira’a (Repurchase) Reference Paper to be published in the near future.    

The Board deliberated on additional standardization projects which IIFM may commence soon including the development of Wakala Master Agreement, standardization of key hedging products and looking into other standardization needs as recommended by IIFM members and the industry.

The Board also provided guidance on improvements in IIFM branding, website and market research report on Sukuk; and appreciated the management’s efforts in improving IIFM’s standing internationally.

The Board reviewed and approved the 2009 audited accounts of IIFM and appreciated the management’s efforts in maintaining a stable membership base despite the difficult economic conditions and remained hopeful that more institutions will come forward to support IIFM.

The Board meeting was followed by the IIFM Members meeting where several member institutions provided their viewpoint to the Board with regards to IIFM initiatives and their significance to the industry.