SECP approves Shariah Advisors Regulations

ISLAMABAD: The Securities and Exchange Commission of Pakistan (SECP) has approved the Shariah Advisors Regulations 2017 to enhance the credibility of the Islamic financial services sector, a statement said on Tuesday.

The regulations, framed under the Companies Act, 2017, would discipline and professionalise Shariah advisory in Pakistan. “Companies and entities will engage only the Shariah advisors registered with the SECP,” it added.

To register, Shariah advisors would need to meet proper criteria and abide by a code of professional behaviour that emphasises objectivity, integrity, and independence of a professional Shariah advisor.

The regulations have been formulated after an extensive consultation process with representatives of Shariah advisors, Islamic Financial Services Board (IFSB) Malaysia, State Bank of Pakistan (SBP), Pakistan Stock Exchange (PSX), Institute of Chartered Accountants of Pakistan (ICAP), takaful operators, modaraba and NBFI Association, Mutual Funds Association of Pakistan, and Shariah Board of the SECP.

The SECP regulates various important elements of the Islamic financial services industry. These elements include Islamic mutual and pension funds, modarabas and NBFIs, takaful operators, Shariah-compliant companies, Shariah-compliant securities, Shariah-compliant real estate investment trusts, and Shariah-compliant indices.

Some of these elements have shown impressive growth. For instance, the share of Shariah-compliant assets of NBFI sector has grown from 12.3 percent in June 2010 to 34.6 percent as of June 2017, the statement said.