Islamic finance scholars should be regulated in line with other professionals such as lawyers and accountants, says David Gray, the director of supervision at the Dubai Financial Services Authority (DFSA).
Under DFSA rules, which apply to companies operating within the Dubai International Financial Centre framework, firms offering Islamic services must have a Sharia supervisory board made up of "competent" scholars.
The firms are subject to annual Sharia reviews and audits, and must follow standards set by the Accounting and Auditing Organisation for Islamic Financial Institutions. TheDFSA supervises these arrangements.
But speaking at the Middle East Investment Summit in Dubai yesterday, Mr Gray said he believed Islamic finance scholars should also be regulated.
"It happens with lawyers and accountants and doctors, why not scholars? They are as fallible as the rest of us."
A lack of standardisation among scholarly opinion led to confusion and ran the risk of "scholarly arbitrage", with "some firms minded to seek the view of a scholar whom they regard as being sympathetic to their product", Mr Gray said.
The small pool of scholars, estimated to be about 140 across the Islamic finance sector, means many sit on several supervisory boards - some as many as 100 boards - which gives rise to claims of conflict of interest, said Azeemuddin Subhani, a Sharia scholar and a professor of Islamic finance at the University of Ajman.
He added the number of finance boards a scholar could sit on should be capped. "The question is not a cap on their earnings but a cap on the number of boards they can sit on. If you are sitting on the boards of even five different banks you can see the potential conflict of interest."
Islamic finance should use the regulatory rebuilding around the world to formalise standards for its industry and increase its global foothold, said Mr Gray.
"Conventional standard-setters still have their hands full with the crisis … That gives the Islamic finance world time to get its house in order," he said. "But if it does not do so, then … it will face more powerful conventional regulatory bodies that will do the job for it. The clock is ticking."
lmiller@thenational.ae
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MATCH INFO
Manchester City 3
Danilo (16'), Bernardo Silva (34'), Fernandinho (72')
Brighton & Hove Albion 1
Ulloa (20')
Zayed Sustainability Prize
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The Perfect Couple
Starring: Nicole Kidman, Liev Schreiber, Jack Reynor
Creator: Jenna Lamia
Rating: 3/5
LIST OF INVITEES
Shergo Kurdi (am)
Rayhan Thomas
Saud Al Sharee (am)
Min Woo Lee
Todd Clements
Matthew Jordan
AbdulRahman Al Mansour (am)
Matteo Manassero
Alfie Plant
Othman Al Mulla
Shaun Norris
The biog
Fast facts on Neil Armstrong’s personal life:
- Armstrong was born on August 5, 1930, in Wapakoneta, Ohio
- He earned his private pilot’s license when he was 16 – he could fly before he could drive
- There was tragedy in his married life: Neil and Janet Armstrong’s daughter Karen died at the age of two in 1962 after suffering a brain tumour. She was the couple’s only daughter. Their two sons, Rick and Mark, consulted on the film
- After Armstrong departed Nasa, he bought a farm in the town of Lebanon, Ohio, in 1971 – its airstrip allowed him to tap back into his love of flying
- In 1994, Janet divorced Neil after 38 years of marriage. Two years earlier, Neil met Carol Knight, who became his second wife in 1994
Scoreline:
Cardiff City 0
Liverpool 2
Wijnaldum 57', Milner 81' (pen)
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COMPANY%20PROFILE
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Sri Lanka-India Test series schedule
1st Test July 26-30 in Galle
2nd Test August 3-7 in Colombo
3rd Test August 12-16 in Pallekele
MATCH INFO
Manchester United v Manchester City, Wednesday, 11pm (UAE)
Match is on BeIN Sports
MATCH INFO
Norwich City 1 (Cantwell 75') Manchester United 2 (Aghalo 51' 118') After extra time.
Man of the match Harry Maguire (Manchester United)
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Biography
Her family: She has four sons, aged 29, 27, 25 and 24 and is a grandmother-of-nine
Favourite book: Flashes of Thought by Sheikh Mohammed bin Rashid
Favourite drink: Water
Her hobbies: Reading and volunteer work
Favourite music: Classical music
Her motto: I don't wait, I initiate
Aggro%20Dr1ft
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Abu Dhabi
Umm Al Emarat Park
Yas Gateway Park
Delma Park
Al Bateen beach
Saadiyaat beach
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Zayed Sports City
Dubai
Kite Beach
Zabeel Park
Al Nahda Pond Park
Mushrif Park
Safa Park
Al Mamzar Beach Park
Al Qudrah Lakes
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