The Council of the Islamic Financial Services Board (IFSB) has approved the guiding principles on disclosure requirements for Islamic Capital Market Products (sukūk and Islamic collective investment schemes)  at its 30th meeting in Kuala Lumpur, Malaysia, today.

The IFSB-19 guideline outlines disclosure requirements for sukūk and ICIS, covering the main stages of disclosure, i.e., initial, ongoing, (periodic and immediate) and point-of-sale disclosure. In addition, the document provides guidance on the disclosure requirements for private offerings, government and multilateral issuances, and cross-border issuances with regard to sukūk.

It also suggests applications to legal and Sharīʻah–related disclosures, operations-related disclosures as well as disclosures for specialist ICIS. Further guidance has been provided on structure-related disclosures, as well as parties liable for such disclosures.

IFSB-19 categorises and sets forth a set of general principles that are common to the disclosure of both sukūk and Islamic Collective Investment Schemes (ICIS), as well as specific principles applicable to each sector.

The objectives of IFSB-19 are to:
1. Provide a basis for Regulatory and Supervisory Authorities (RSAs) to set rules and guidance on disclosure requirements for Islamic Capital Market (ICM) products, specifically for sukūk and ICIS;
2. Outline a basis for RSAs to assess the adequacy of the disclosure frameworks specified by other organisations;
3. Provide a comprehensive disclosure framework for participants in the ICM sector; and
4. Create harmonisation of regulation and practice in the ICM, and thus facilitate cross-border offerings.

The softcopies of IFSB-19 will be available on the IFSB website, www.ifsb.org in both English and Arabic languages in due course.

The meeting was attended by 13 governors and deputy governors of regulatory and supervisory authorities, and eight senior representatives from among the council and full members of the IFSB, representing 15 countries.

The meeting was also attended by Dr Bandar Hajjar, president of the Islamic Development Bank; and was chaired by Fazle Kabir, deputy chairman of the council of the IFSB and governor of Bangladesh Bank. - TradeArabia News Service