The Islamic Finance Qualification (IFQ) expands upon knowledge
gained from the Fundamentals of Islamic Banking and Finance. It
is a global qualification that covers Islamic finance from both a
technical and a Shariah perspective, providing the first
international benchmark in the area of Islamic finance.
It provides an understanding of the influence of Shariah in a
business context and prepares candidates to hold key positions in
Islamic finance and takaful (Islamic insurance) industries.
Islamic Financial Qualification (IFQ)
4-7 March 2019
Learning Outcome
Knowledge: Candidates will be able to recall information such as facts, rules
and principles.
Understanding: Candidates to demonstrate comprehension of an issue, fact, rule or
principle.
Application: Candidates to be able to use their knowledge in a given set of
circumstance to present a clear and detailed explanation of a
situation, rule or principle.
Programme Outline
The Basis of Islamic Banking and Finance
An Introduction to Islamic Banking and Finance
Islamic Principles of Exchange
Basic Contracts and Techniques Applied by Islamic Banks
Islamic Asset Management and Socially Responsible Investing (SRI)
Sukuk Market
Islamic Insurance- Takaful
Islamic Corporate Governance
MODULE 1: THE BASIS OF ISLAMIC
BANKING AND FINANCE
1. Conceptual Framework
Islamic Commercial Ethics
Charitable Distribution
Wealth Creation
Enterprise and Asset Bias
2. Islamic Fundamentals
Shariah and Its Role
The Sources of Shariah
Primary Resource
Secondary Resource
Schools of Thought
Bodies of Interpretation
Programme Modules
MODULE 2: AN INTRODUCTION TO ISLAMIC
BANKING AND FINANCE
1. History of Islamic Finance
2. Differences and similarities between
Islamic and conventional finance
3. Structure and Scope of the Islamic
Finance Industry
4. Operational structure of Islamic Banks
5. Methods of income generation
6. Bodies of Interpretation
MODULE 3: ISLAMIC PRINCIPLES OF
EXCHANGE
1. Islamic Teachings Related to Business
2. Principles of Islamic Contracting
3. Major Prohibitions
Riba
Nature of Riba
Types of Riba
Gharar
Nature of Gharar
Types of Gharar
4. Rules of Exchange
No Profit without Liability
Do Not Sell What You Do Not Have
No Debt for Debt
Two Sales in One
Challenges for Product Innovation
MODULE 4: BASIC CONTRACTS AND THEIR
TREATMENT
1. Contracts
Types of Undertakings
What constitutes a contract
(Contract Elements)
2. Contracts of Exchange
Musawama
Murabaha – Murabaha with
promise to purchase
Salam and Parallel Salam
Istisna and Parallel Istisna
3. Contracts allowing the transfer of the
Usufruct
Ijara – Ijara Muntahya Bitamleek,
Ijara Mawsofa belthema
4. Partnership Contracts
Mushakara – Diminishing
Mushakara
Mudaraba
5. Security Contracts
Hawala
Kafala
Rahn
6. Agency Contract (Wakala)
Wakala
7. The rules regarding foreign exchange
transactions
8. Accounting Treatment
MODULE 5: FINANCIAL CONTRACTS AND
TECHNIQUES APPLIED BY ISLAMIC BANKS
1. Sources of Funds
2. Uses of Funds
3. Mudaraba – Sharia’a Standards
Application of the Mudaraba
Contract to Deposits
Return in a Mudaraba Contract
Two-Tier Mudaraba Structure
Restricted and Unrestricted
Investment Accounts
4. Application of Wa’d
5. Musharaka – Sharia’a Standards
Permanent or Continous
Musharaka
Diminishing Musharaka
6. Murabaha – Sharia’a Standards
Murabaha: The Installment Credit
Rules Contract
MODULE 6: ISLAMIC ASSET AND FUND
MANAGEMENT
1. Asset Management
2. Selection of Sharia’a Compliant
Investments
Industry Screen
Financial Screen
Application of the Industry and
Financial Screen
Non-Compliance
3. The Definition of a Fund
Shariah Complaint Fund
4. Islamic Fund Management Structures
5. Types of Funds
Fixed-Income funds
Lease funds
Commodity funds
Real Estate funds
Equity funds
Exchange-traded fund
Hedge funds
MODULE 7: SUKUK MARKET
1. Definition and Characteristics of Sukuk
Conventional debts securities and
Sukuk
Differences between Sukuk and
Conventional Debts Securities
2. Structuring Sukuk Transactions
The basic Sukuk Issuance process
Calculating Sukuk return
3. Different Types of Sukuk
AAOFI Classification of Sukuk
4. Main Types of Sukuk (Most Common)
Sukuk al Murabaha
Sukuk al Ijarah
Sukuk al Wakala
Sukuk al Musharaka
Sukuk al Istisna’
Sukuk al Salam
5. Capital market considerations relating to
Sukuk
Rating the issue
Distribution
MODULE 8: ISLAMIC INSURANCE –
TAKAFUL
1. Introduction
2. Types of Takaful Undertaking
General and Family Takaful
3. Structures of Takaful Undertakings
Introduction
The Two-Tier Structure and Its
Mechanism
Fiqh Contracts used in Takaful –
Summary
4. Underwriting Surplus and Technical
Provisions
Definitions
Application of Takaful
5. Insurance Industry Considerations
General Takaful (Non-Life)
Life or Family Takaful
Internal Risk-Pooling Arrangement
6. Reinsurance and Retakaful
7. Shariah Governance and Compliance
MODULE 9: ISLAMIC CORPORATE
GOVERNANCE
1. Introduction to Corporate Governance
2. Corporate Governance in Financial
Institutions
3. Sharia’a Supervisory Board
Role of SSB
The Advisory Role
The Approval Role
The Audit Role
SSB Membership
Governance and Reporting
Shariah Executive Committee and
Internal Shariah Experts
Other Duties and Guidance
4. Internal Sharia’a Audit (AAOIFI
Requirements)
5. Governance Standards
6. Shariah Compliance and Investment
Account Holders
Rights of IAHs
IAH and Shareholders
UIAHs and RIAHs
7. Implications for Islamic Insurance
(Takaful)
Introduction: Nature and Structure
of Takaful
Corporate Governance Issues in
Takaful
Programme Leader
FAROUK ABDULLAH ALWYNI
Farouk is a trainer, lecturer, and financial consultant. He spent most of his Islamic finance career in
the Jeddah-based Islamic Development Bank Headquarters handling hundreds of US$ million IDB
trade finance operations in many countries in Asia & CIS countries such as Bangladesh, Indonesia,
Iran, Kazakhstan, the Maldives, and Tajikistan (1998-2007).
Prior to running PT. Alwyni International Consulting (AIC) in 2012 (www.alwynicapital.co.id), Farouk
was a member of the executive management of PT. Al-Ijarah Indonesia Finance (ALIF), the first
Islamic leasing company in the country (owned jointly by Bank Muamalat Indonesia and Gulf
Islamic financial institutions), in 2007-2009 and PT. Bank Muamalat Indonesia (BMI) in 2009-2011
where he initiated and implemented a number of new initiatives.
Farouk serves as the chairman and co-founder of Center for Islamic Studies in Finance,
Economics, and Development (CISFED), a Jakarta based think tank whose objective is to develop
an integrated paradigm in addressing Indonesian and global development issues
(www.cisfed.org). He also lectures in PERBANAS (Indonesia’s National Banking Association)
Institute Graduate School of Management (MM Program – PERBANAS Institute) and the Graduate
School of Management (MM Program), the Faculty of Economics & Business, the University of
Indonesia (MM-FEB-UI) on Islamic finance and banking subjects. He served as a country
correspondent for Kuala Lumpur based - Islamic Finance News in 2013-2017.
Farouk obtained his Bachelor in Banking & Financial Management from PERBANAS Institute
(Jakarta-Indonesia), MA in Economics from New York University (USA), and MBA in International
Banking & Finance from the University of Birmingham (UK). Currently, he is also pursuing his PhD
research on Islamic-based development in the University of Science Malaysia (Penang, Malaysia).
Farouk has a Diploma in Islamic Finance from Chartered Institute of Management Accountant
(CIMA), London, UK & an Islamic Finance Qualification (IFQ) from Chartered Institute for Securities
& Investment (CISI), London, UK. Farouk speaks and writes about Islamic finance & economic
issues in local as well as international forum and media. He regularly appears in a major
Indonesian television network on a variety of finance, economic, and social issues. He is in the
2016's, 2017's, and 2018's list of ISLAMICA500 (www.Islamica500.com). This list is a collection of
individuals considered influential in the development of Islamic Economy or as the title of this
guidebooks says "The 500 who make the Islamic Economy.”
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Islamic Finance Qualification
(IFQ)
PROGRAMME FEES
IMPORTANT NOTE
Stakeholders are participants from
MOFE, AMBD and all domestic banks in
Brunei Darussalam.
TERMS AND CONDITIONS
The Programme fee is inclusive of workshop
material(s), refreshment and certificate.
Payment must be made upon receipt of
invoice issued by CIBFM.
CIBFM operates a strict NO CANCELLATION
POLICY once the receipt of registration has
been issued. However, CIBFM will welcome
and accept replacements.
CIBFM reserves the right to amend, change
or cancel the programme at any given time.
We will immediately notify participants and
organisations if any such changes are to be
made.
Please email your completed form to
Stakeholders Non-stakeholders
$ 880 $1,150 Programme
Fee
Exam Fee $1,050 $1,150