By: Dr Amat Taap ManshorIFN Indonesia Forum

15 April 2014Shangri-La Hotel, Jakarta

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Industry Overview of Islamic Finance

Education & Training Services –Industry Facts and Trends

Assuring Quality of Human Capital in the IFSI

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Outline

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Talent Shortage in the IFSI

Source: FAA-IFN Human Capital Development Survey: FEB 2014.

50%

72% 69%

75%No. of people currently

working in the IFSI is insufficient

Practitioners without a formal qualification are

less capable of doing their job

Believe that technical knowledge of Management is only average

Conventional bankers need specific training

before they can perform an Islamic finance-related

role

Lack Shariah expertise, Islamic Finance

Knowledge & Practical Experience

80%

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Shortage of Islamic Finance Professionals by Sector

50%

63%

63%

88%

Shortage of Islamic Finance Professionals by Sector

Source: Report of the Islamic Finance Task Force of the COMCEC Capital Market Regulator 2013

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Islamic Finance Training Providers

22%22%

z

43%

2%

8%

19%

Source: Yuriz, Global Islamic Finance Education Report 2013: Special Report

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Top 10 Countries by No. of Islamic Finance Education & Knowledge Service Providers

Source: Yuriz, Global Islamic Finance Education Report 2013: Special Report

Academics & Higher Learning

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Top 10 Countries by No. of Islamic Finance Education & Knowledge Service Providers

Source: Yuriz, Global Islamic Finance Education Report 2013: Special Report

Non – Academic (Training & Others)

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Issues & Challenges in Developing Human Resources in Islamic Finance

2. Quality of Learning

1. Learning Standards

5. Qualifications Gap3. Skills Gap

4. Learning Gap

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Talent Development

Policies & Incentives

International Connectivity &

Recognition

Well –established Quality Assurance Framework

Well-defined Finance Qualification Structure

ProfessionalStandards

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Institutions of Higher Learning (IHLs) & Industry Partnership

Integrated and Coordinated Approach to Global Quality of Islamic Finance Talent Development

Global Quality of Islamic

Finance Talent

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Finance Accreditation Agency

An international and independent quality assurance andaccreditation established in August 2012.

Provides high quality assurance practices and accreditation ofinstitutions, learning programmes and individuals in thefinancial services industry (FSI)

Promotes the highest standards in the development of talent for the FSI.

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DESIREDLearning Quality

FAA Focus

Driving Quality Excellencein Learning Programmes Design, Development &

Delivery

Development of Integrated Quality Assurance Framework & Standards

Promoting Future Practices in Talent Development

Global Recognition of Learning Programmes in FSI

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FAA LEARNINGCRITERIA (FLC)

FAA LEARNING STANDARDS (FLS)

FAA RECOGNITION OF LEARNING (FRL)

FAA QUALITY FRAMEWORK

FAA QUALIFICATION STRUCTURE (FQS)

Integrated Quality Assurance Framework

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FAA Learning Standards (FLS)

FAA VALUES

1. Learning levels

2. Learning outcomes

3. Learning programme objectives

4. Body of knowledge

8. Assessment methods

7. Modes of delivery

6. Learning hours

5. Learning Topics

9. Entry requirements

10. Specific resources required

11. Description of trainers or

facilitators

The objective of FLS is toensure consistency oflearning contents across FSIaccording to internationallybenchmarked industryrequirements. FLS providesminimum standards forlearning programmesacross different sectorswithin financial servicesindustry.

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FAA Learning Standards (FLS)- Islamic Banking

TECHNICAL COMPETENCIES

CREDIT

COMPLIANCE

RISK MGMT

TREASURY

SHARIAH

INTERNAL AUDIT

SHARIAH

Leadership & Teamwork

Ethics & Values

Management People Skills

Personal Skills

GOVERNANCE

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FLS for Sub Areas -Islamic Banking

TECHNICAL COMPETENCIES

INTERNAL AUDIT

RISK MGMT

SHARIAH

COMPLIANCE

TREASURY

CREDIT

Credit Risk

Market Risk

Fundamentalsof Risk Mgmt Operational

Risk Business

Retail

Operations& Treasury

Mgmt

Sukuk & Islamic

Derivatives

Money Market

Foreign Exchange

Fundamentals of Shariah

Application of Shariah in Muamalat

Transactions

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TECHNICAL COMPETENCIES

UNDERWRITING

COMPLIANCE

RISK MGMT

MARKETING AND SALESSHARIAH

INTERNAL AUDIT

CLAIMS

FAA Learning Standards (FLS)- Takaful

SHARIAH

Leadership & Teamwork

Ethics & Values

Management People Skills

Personal Skills

GOVERNANCE

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TECHNICAL COMPETENCIES

INTERNAL AUDIT

RISK MGMT

SHARIAH

COMPLIANCECLAIMS

UNDERWRITING

MARKETING AND SALES

FLS for Sub Areas - Takaful

Management of Insurance

Risk

Fundamentals of Risk

Management

Fundamentals of Insurance Marketing

Marketing and Sales

Management

Underwriting Management

Fundamentals of Underwriting

Fundamentals of Claims

Claims Management

Fundamentals of Shariah

Application of Shariah in Muamalat

Transactions

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Conclusion

Quality of Talent is critical to thedevelopment of the Islamic FinanceIndustry. This can be achievedthrough harmonisation of learningstandards across IFSIs according tointernationally benchmarkedindustry requirement..

Strong concentrated effort betweeneducation providers and industry players inimproving training and learning to meetexpectation of the industry is essential.

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Thank Youfaa.org.my

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