Legal Compliance versus Moral ... - Islamic Banking WS/IIBI-ISRA SNR... · Legal Compliance versus...

4th Annual IIBI-ISRA International Thematic Workshop

Legal Compliance versus Moral Responsibility in Islamic Banking and Finance

Hosted by:Venue:

SNR Denton1 Fleet Place LondonEC4M 7RAUnited Kingdom

Monday, 10th September 2012 London, United Kingdom

The one-day workshop is being held at a time when the banking industry in the West is beset with allegations of moral failures in banking standards and practices driven by unbridled greed for

principles along with internal supervision by Shari’ah scholars.

Shari’ah scholars, are accepting a minimalist approach to supervision and self-regulation in product development and are merely adopting an identical mindset as witnessed under conventional banking business practices that failed to give proper consideration to the economic

all, including governments and regulators, is to change the system into one that is inherently more moral, just and sustainable.

shouldering their responsibility and contributing enough to implementing the welfare system that is envisaged under the Shari’ah. There must also be lessons for other stakeholders in the

Descartes: Man is incapable of understanding any argument that interferes with his revenue.

For further information, please contactMr Rahim AliTel: +44(0)207 245 0404Email: [email protected]

By Invitation only

Supported by:

.

http://www.isra.my/

http://www.snrdenton.com/

http://www.islamic-banking.com/

[email protected]

http://www.thecityuk.com/uk-financial-services-overseas/sectors/islamic-finance/

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Programme

08:00 – 09:00 Registration

09:00 – 09:20 Welcome Address:

09:20 – 10:00

10:15 – 11:30 Session 1: Moral Failures in Banking and Finance

2. Mr Richard Thomas OBE, CEO, Gatehouse Bank, UK

3. Mr Joseph DiVanna, Managing Director, Maris Strategies, UK

1. Mr Iqbal Asaria CBE, Associate, Afkar Consulting, UK

11:30 – 11:50

11:50 – 13:15 Session 2: Product Development and Shari’ah Governance – Have Shari’ah Scholars and Senior

Managers adhered to the moral goals and welfare objectives of Shari’ah?

Chairperson: Mr Richard de Belder, Senior Partner and Head of Islamic Finance, SNR Denton, UK

13:15 – 14:15 Lunch / Prayer Break

*Organisers reserve the right to amend /change the programme without prior notice*

4th ANNUAL IIBI/ISRA INTERNATIONAL THEMATIC WORKSHOP

Chairperson: Mr Fazl Syed, Chair of Business & Economics Committee, Muslim Council of Britain, UK

4. Prof Dr Habib Ahmed, Sharjah Chair for Islamic Law and Finance, Durham University, UK

Legal Compliance versus Moral Responsibility in Islamic Banking and Finance Monday 10 September, 2012 Venue : SNR Denton, One Fleet Place, London EC4M 7RA, United Kingdom

10:00 – 10:15 Programme Overview:

2. Dr Marjan Muhammad, Researcher, ISRA, Malaysia

• Recommendations for Shari’ah governance and Q & A

king and Finance.

fate?

Panel Speakers

Opening Address:

SNR - Mr Richard de Belder, Senior Partner and Head of Islamic Finance, SNR Denton, UK IIBI - - Mr Iqbal Asaria CBE, Associate, Afkar Consulting, UK

Mr Alberto Brugnoni, Founder and Chairman, ASSAIF, ItalyMr Neil D Miller, Head of Islamic Finance, KPMG, U.A.E

ts motivated by unbridled greed to

• Lessons that governments and regulators can learn from Islam

• Is enough being done to prevent legal tricks and the combining of contracts to meet impermissible ends? • What should be the mandate of Shari’ah advisors and supervisory boards?

Panel Speakers

3. Mufti Abdul Kadir Barkatulla, Shari’ah Scholar, UK

• Recommendations for code of ethics and Q & A

Assoc. Prof. Dr Mohamad Akram Laldin, Executive Director, ISRA, Malaysia

•

in the product development process of

1. Mr Asim Khan, Managing Director, Dar Al-Istithmar, UK

4. Dr Murat Unal, CEO, Funds@Work, Germany

al institutions?

• What are the different approaches to Shari’ah governance?

http://www.isra.my/

http://www.islamic-banking.com/

http://www.snrdenton.com/

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14:15 – 15:35 Session 3: Best Practice for Shari’ah Audit

Chairperson: Mr Warren Edwardes, CEO, Delphi Risk Management, UK

15:35 – 15:55

15:55 – 17:20 Session 4: Way Forward: Developing a Moral Framework for Financial Transactions

17:20 – 17:35 Wrap-up / Recommendations:

17:35 – 17:50

• What are the different approaches to shari’ah audit and review?

• Recommendations and Q & A

Closing Address: Assoc. Prof. Dr Mohamad Akram Laldin, Executive Director, ISRA, Malaysia

• Legal documentation versus real transactions - how should Shari’ah Compliance audit be conducted for moral substance and economic outcomes?

• What are the possible approaches in audit to ensure the implementation of the Shari’ah welfare objectives in product innovation and development?

• Appraisal of Standards promoted by Accounting and Auditing Organisation for Islamic Financial Institutions (AAOIFI)

Panel Speakers:

Tea / Coffee Break

• Do AAOIFI standards go far enough? • Is a central professional body for Shari’ah Scholars desirable?

SNR Denton is a client-focused international legal practice delivering quality and value. We serve clients in key business and

c and Africa, making us a top 25 legal services provider by lawyers and professionals.

*Organisers reserve the right to amend/change the programme without prior notice*

Mr Iqbal Asaria CBE, Associate, Afkar Consulting, UK

Mr Richard de Belder, Senior Partner and Head of Islamic Finance, SNR Denton, UK17.50 – 18:00 Final Remarks:

• Is the training and education for shari’ah internal and external audit staff adequate for the purpose of realising Maqasid Al Shari’ah?

1. Assoc. Prof. Dr Asyraf Wajdi Dusuki, Head of Research Affairs, ISRA, Malaysia2. Mr Mohammed Amin, FormerTax Partner & Head of Islamic Finance PwC, UK3. Mr Khairul Nizam, Deputy Secretary General, AAOIFI, Bahrain

Panel Speakers:

2. Mr Michael J T McMillen, Partner, Curtis, Mallet-Prevost, Colt & Mosle LLP, U.S.A 3. Mr Neil D. Miller, Head of Islamic Finance, KPMG, U.A.E

1. Assoc. Prof. Dr Mohamad Akram Laldin, Executive Director, ISRA, Malaysia

Chairperson: Mr Alberto Brugnoni, Founder and Chairman, ASSAIF, Italy

oral conduct?

• Discussion on recommendations for standard setting bodies: i) Code of Ethics ii) Shari’ah Governance iii) Shari’ah Audit

azkia Group, Indonesia

4. Dr Adnan Aziz, CEO, Islamic GDP, UK

5. Mr Khairul Nizam, Deputy Secretary General, AAOIFI, Bahrainy

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Mohamad Akram Laldin, Executive Director, ISRA, MalaysiaMohamad Akram Laldin is Executive Director of the International Shari’ah Research Academy for Islamic Finance (ISRA) in Malaysia. Prior to being entrusted to head ISRA, he was teaching and conducting research at the International Islamic University Malaysia (IIUM) and has also served as a Visiting Lecturer at the University of Sharjah, United Arab Emirates.

Member of Bank Negara Malaysia Shari’ah Advisory Council, Member of Maldives Monetary Authority Shari’ah Board, Member of HSBC Amanah Global Shari’ah Advisory Board, Member of Shari’ah Advisory Council International Islamic Financial Market (IIFM), Bahrain, and Committee Member of AAOIFI Shari’ah Standards, Bahrain and other Boards locally and internationally. He was also the recipient of the Zaki Badawi Award 2010 for Excellence in Shari’ah Advisory and Research.

Neil D. Miller, Global Head of Islamic Finance, KPMG, U.A.ENeil D. Miller is Global Head of Islamic Finance at KPMG (one of the leading professional

and the U.A.E.

investment classes and industrial sectors. He also advises on the structuring of Islamically acceptable

advised on Shari’ah governance issues and is particularly interested in how best to manage the interface between the requirements of Shari’ah compliance, governing law and the need for certainty in cross

internationally renowned Shari’ah scholars.

Alberto Brugnoni, Founder and Chairman, ASSAIF, Italy

Alberto G Brugnoni, a former director with Merrill Lynch Bank, is an independent Islamic

done in Europe. In 1997 he released 'Pilot Project Genoardo,' a seminal study for the establishment of a Mediterranean Development Bank based on Shariah-compliant principles.

In September 2011 he has successfully structured the debut syndicated Islamic facility in the Russian Federation for Ak Bars Bank. The transaction was named ‘Europe Deal of the Year’ by the Islamic Finance

News. At present, he is based in Kabul with the remit to launching Takaful in Afghanistan

that provides strategic institutional advisory services worldwide to governments, central banks, public and semi-public institutions, regional and local authorities. ASSAIF focuses only on projects that are spiritually,

Al-Salsabil, an Islamic micro-private equity initiative

many papers related to Islamic Banking and �nance at domestic and international level and has conducted

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Richard de Belder, Senior Partner and Head of Islamic Finance, SNR Denton, UK

Richard de Belder is a Senior Partner at SNR Denton, an international law practice, based

East, the UK and the USA and has also been involved in various capital market transactions in the Middle East. Richard has had many years experience in dealing with leading Shari'ah scholars and has been actively involved in the structuring and documentation of many leading Shari'ah-compliant transactions.

Michael has vast experience in the development and implementation of innovative

His transactional work in the Middle East, North America, Europe, and Southeast Asia has included extensive investment funds work and transactions involving most major asset classes.

Michael was the founding Chairman of the Islamic Finance Section of the American Bar Associationand thereafter served as Chairman and Senior Advisor for that Section. He has also been responsiblefor capital markets initiatives of the Islamic Financial Services Board. Additionally, Michael has twicebeen the recipient of Euromoney’s award as the “Best Legal Adviser in Islamic Finance” and Euromoney

additionally been honored with the Sheikh Mohammad Bin Rashid Al-Makhtoum Award For SpecialContributions to Islamic Finance and the Best Legal Advisor in Islamic Finance in North America.

Michael J T McMillen, Partner, Curtis, Mallet-Prevost, Colt & Mosle LLP, U.S.A

Khairul Nizam, Deputy Secretary General, AAOIFI, Bahrain

Khairul Nizam is Deputy Secretary General of Accounting and Auditing Organization for Islamic Financial Institutions (AAOIFI) Manama, Bahrain. His responsibilities include carrying out AAOIFI’s activities in relation to development and adoption of its international Islamic �nance standards, and o�ering of its professional development programs. He also delivers training on application of AAOIFI standards, and on Islamic banking and �nance.

Prior to joining AAOIFI in 2005, Khairul was with Malaysia’s largest �nancial services group for over 10 years, and was Head of Islamic Banking in the group’s o�shore banking arm. He also served in various areas of the group’s operations, including corporate banking, auditing, and international banking. Khairul graduated from the University of Nottingham, United Kingdom, and is a Certi�ed Islamic Professional Accountant (CIPA).

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Richard Thomas OBE, CEO, Gatehouse Bank, UK

years’ experience in the sector. He is CEO of Gatehouse Bank, a pioneering FSA

London, UK. In 2011, Her Majesty Queen Elizabeth II bestowed Richard with the honour

Richard is also the UK Trade & Investment’s Special Representative for Kuwait, assisting in the Government’s policy on the promotion of bilateral business and trade development between these countries and a Fellow of the Chartered Institute for Securities & Investment. He previously held the position of Head of Islamic Financial Services at the Arab Banking Corporation (ABCIB) in London, as well as CEO of ABCIB Islamic Asset Management Limited and Alburaq UK. He also held senior positions related to

Iqbal Asaria CBE, Associate, Afkar Consulting, UK

PR programmes for products and services targeted at the Muslim community. As part of his work with the company Iqbal has advised many banks in the UK on their launch

Iqbal has a background in Economics and Finance and was one of the key persons involved in the introduction of Islamic Financial products into the UK market place. He was a member of the Governor of Bank of England's Working Committee on Islamic

Finance and is a consultant on Islamic Financial Services to Lloyds TSB Group in addition to having worked with HSBC Amanah, ABC (Al Buraq) and The Children's Mutual. Iqbal also lectures on Islamic Economics, Banking and Finance at the CASS Business School for the MSc Finance course and for the Executive MBA in Dubai. Iqbal is also a special advisor to the Secretary General of the Muslim Council of Britain on

awarded the CBE in the 2005 Queen's Honours List for services to international development.

Mohammed Amin, Former Tax Partner and Head of Islamic Finance, PwC, UK

Mohammed Amin is an Islamic Finance Consultant, Member of the Advisory Council at Three Faiths Forum and Vice Chairman at Conservative Muslim Forum. He was at one time the Chair of Business & Economics Committee at Muslim Council of Britain

Muslims in the UK.

For 33 years Amin, a Cambridge graduate, practiced as a tax advisor, most recently

spending 19 years as a tax partner at PricewaterhouseCoopers LLP. He specialised in international tax

treasury tax network. Most recently before his retirement at the end of 2009, Amin was PwC’s head of

2003 until he retired, Amin was an elected member of PwC’s 15 person Supervisory Board, responsible

withdrawals.

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Mufti Abdul Kadir Barkatulla, Shari’ah Scholar, UK

Mufti Barkatulla is a prominent Shari’ah scholar with a strong background in

Banking Corporation London and Lloyds TSB.

Mufti Barkatulla initially graduated in Islamic Studies at the famous Darul Uloom

authoritative edicts) in 1974. Moving to London in 1979, he pursued his studies and attained both B.Sc. (1985) and M Phil (1992). As a broadcaster and maintainer of the Islamic Helpline, and as one of the Shari’ah Judges at the Islamic Shari’ah Council, Mufti Barkatulla also has a wide experience of dealing with

Warren Edwardes, CEO, Delphi Risk Management, UK

instrument innovation and risk management consulting, expert-witness and training

of Financial Engineering. He has dealing desk experience in Treasury and Capital Markets areas as an asset/liability manager, risk immuniser and portfolio manager, and has experience as an investment and commercial banker, in a AAA corporate treasury and in insurance.

Mr Edwardes' specialities include Islamic banking product development and his best-selling book ‘Key

Fazl Syed, Chair, Business and Economics Committee, Muslim Council of Britain, UK

Fazl Syed is an Ivy League educated international lawyer with over two decades experience of working in various jurisdictions in the U.S., Europe and Asia. Fazl did his Masters with distinction from Columbia Law School and Columbia Business School in

with a dissertation on Islamic Banking & Finance. Prior to his admission as a New York Attorney-at-Law and as English Solicitor, Fazl practiced as an Advocate at the national level in the Supreme Court of India. He has worked with several international law

strategy relating to structuring of Shari’ah-compliant transactions besides acting as a global consultant

Fazl chairs and speaks at conferences globally and sits on several industry bodies including the UK Treasury Technical Working Group on Islamic Finance, the Commonwealth Business Council Working Group on Islamic Finance and leads the Islamic Finance initiative for the New Silk Road (NSR) Forum

infrastructure development in the old ‘Silk Road’ economies. Fazl chairs the Business & Economics Committee of the Muslim Council of Britain and acts as convenor of the Islamic Finance Experts’ Group (IFEG).

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Habib Ahmed, Sharjah Chair for Islamic Law and Finance, Durham University, UK

Habib Ahmed is the Sharjah Chair for Islamic Law and Finance at Durham University. Prior to joining Durham University, Habib was Manager of Research and Development with the Islamic Banking Development Group at The National Commercial Bank (NCB), Kingdom of Saudi Arabia. He also worked at the Islamic Research & Training Institute (IRTI) of the Islamic Development Bank Group. He has also taught at the University of Connecticut, USA, National University of Singapore, and University of Bahrain.

He has been a member of the Capital Adequacy Working Group of Islamic Financial Services Board (IFSB)

institutions. Habib regularly contributes to academic journals and has published several books on Islamic

helped establish more than 14 Islamic Banking Units and 7 Takaful Operators, and he is Rector and Chairman of the Tazkia University College of Islamic Economics which has

involves social elements including education and medical care which has had over

Tazkia. In addition, he is also Shari’ah advisor to several banking institutions and takaful operators in Indonesia, Malaysia and Dubai.

he has written extensively on Islamic economics and the life of the Prophet Muhammad. His publications

numerous awards including Shari’ah Award by Bank Indonesia and Bank Muamalat and Anti-corruption and Good Governance Award from the Indonesian Ministry of Administrative Reform.

Murat Unal, CEO, Funds@Work, Germany

Murat has published and contributed to more than 1000 articles in local and international dailies, practitioner magazines, industry books but also academic journals. His latest network analytic research “The Small World of Islamic Finance” was cited over 50,000 times alone in over 50 countries in the last year and became a

over 200 projects across Europe and the Gulf Region for local and international clients. In this context, together with his team, Funds@Work has developed new solutions and organisations and been involved in numerous market entry as well as expansion projects, and also assisted in take over activities within the asset management industry.

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Asim Khan, Managing Director, Dar Al-Istithmar, UK

industries across the Asian sub-continent, Middle East and Europe, while working with top tier organisations such as PricewaterhouseCoopers, KPMG and Deutsche Bank.

structured notes); developed various Shari'ah compliant investment funds (including that of Islamic indices, Shari’ah compliant investment banking products, private equity and infrastructure funds); converted various conventional products into Shari’ah compliant products and advised on

Over the last year, Asim has led his team in Shari’ah structuring, legal documentation reviews and Shari’ah

GCC and a major international investment bank. Currently, among other projects, Asim is involved in another Sukuk for a major international investment bank and setting up of an Islamic issuance platform.

Adnan Aziz, CEO, Islamic Global Distribution Platform, UK

authored research articles, and is a frequent speaker at industry conferences. He has

ever dedicated Islamic platform to facilitate globally the distribution of third party

which he particularly aspires to promote themes relating to socially responsible and

Shari’ah.

Adnan possesses a wealth of academic and research experience and has had extensive consultancy and senior managerial industry experience. Dr Aziz has previously worked for a subsidiary of Deutsche Bank and BMB Islamic UK Ltd

Joseph DiVanna, Managing Director, Maris Strategies, UK

With over 35 years of business and banking experience, Joseph DiVanna is the Managing Director of Maris Strategies a Cambridge-based strategy consultancy and

emerging markets

He is a strategist for numerous banks, technology companies and multinational businesses, Joe is also

Transcends Cultures, The State of the Islamic Banking Industry and A New Dawn: The Rise of Islamic

New Renaissance in Value Proposition and How to Run a Bank.

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Research Academy for Islamic Finance (ISRA) in Malaysia. Apart from serving ISRA, he

Asyraf holds Master of Science degree in Islamic Economics, Banking and Finance and Ph.D in Islamic Banking and Finance from Loughborough University, United Kingdom. He has also published a number of

Initiatives” has been awarded as the 2009 Outstanding Paper Award by the well-known International Referred Journal Article Publisher Emerald Literati Network.

Marjan Muhammad, Researcher, ISRA, Malaysia

Marjan Muhammad is a researcher at the International Shari’ah Research Academy for Islamic Finance (ISRA). She obtained her Masters and Doctoral degrees in Islamic Revealed Knowledge and Heritage (Fiqh and Usul al-Fiqh) from the International Islamic University Malaysia (IIUM), after graduating from the same university in 1998 for her Bachelor degree.

Prior to joining ISRA, she was a tutor at the Faculty of Law and Syari’ah, Islamic Science University of Malaysia (USIM) and she also taught at the Matriculation Centre, International

Islamic University Malaysia. Marjan is also a member of Group Shariah Committee (GSC) for RHB Islamic Bank, and Shariah Advisory Committee (SAC) for Malaysian Building Society Berhad (MBSB).

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