The International Shariah Research Academy for Islamic Finance in Kuala Lumpur will pick a board of regulators by year- end to issue permits for scholars qualified to sit on Shariah boards. The scholars decide whether financial products meet the religion’s precepts, including a ban on interest payments.

There is a need for certfified Shariah scholars to enter and become members of advisory committees as the Islamic finance market begins to flourish. Advisory scholars will be required to have recognized university degrees when the work for different banks and companies.

The International Shariah Research Academy for Islamic Finance in Kuala Lumpur, whose members include Sheikh Nizam Yaquby of Bahrain, Mohammad Daud Bakar of Malaysia and Abdul Sattar Abu Ghuddah of Syria, wishes to strengthen confidence by making Shariah scholars truly professional.

Now, there is a shortage of Shariah scholars and this means that they tend to sit on a number of advisory boards simultaneously, which increases the risk of conflicts of interest. A centralized regulator for scholars will help increase investment because banks would save time in choosing experts to ensure products meet religious principles, said the academy’s Hasan, who also serves on the Shariah board of Malaysia’s central bank. The institution doesn’t plan to restrict scholars on the number of advisory panels they can join, he said.

News source: arabianbusiness.com