SECP Reconstitutes its Shariah Advisory Committee

The Securities & Exchange Commission of Pakistan (SECP) has reconstituted its Shariah Advisory Committee (SAC) under the SECP Act, 1997. The SAC is mandated to assist SECP in approving Shariah-compliant issues and guidance for the promotion of Islamic finance within the regulatory ambit of SECP. It has been further mandated to perform functions under rule 25 of the Takaful Rules, 2012. SAC will be chaired by prominent scholar Dr. Mufti Irshad Ahmed Aijaz, who is also serving as Chairman of the State Bank of Pakistan’s (SBP) Shariah committee and is a member of the Religious Board for Modarabas. Other members included Omar Mustafa Ansari, who is a renowned chartered accountant by profession and is presently serving as Secretary General of the Accounting and Auditing Organization for Islamic Financial Institutions (AAOIFI). Mufti Ehsan Waquar is the third member of SAC, having contemporary qualifications in diverse disciplines apart from religious qualifications. He is currently serving as Chairman of the Shariah Boards of National Bank and Soneri Bank. The Head of the Islamic Finance Department of SECP and Registrar Mudaraba Mr. Tariq Naseem will serve as the fourth member of the committee. Apart from the reconstitution of SAC, the SECP also formed a consultation committee to assist in the preparation of the Islamic finance development plan and future roadmap through empirical work, studies, and industry collaboration. The consultation committee has been mandated to prepare a recommendatory report on the capital markets, insurance industry, and other non-bank financial sectors. The consultation committee will be led by Dr. Irum Saba, Associate Professor at the Institute of Business Administration (IBA) and a globally recognised professional in the field of Islamic finance. Other members of the consultation committee include senior representatives of Islamic asset management, Islamic banks, Modaraba, the capital market, and academia. The chairperson of the committee has been authorised to invite participation from the industry while formulating recommendations. Additionally, the SECP has also designated its officers as “Islamic finance champions” in all its policy functions. They will serve as focal points for concerted and coordinated efforts to promote shariah-compliant products and services across the regulated sectors of SECP.