IFC & ISRA Thematic Workshop - 26 Oct 2016
Is the Current Model of Shari’ah Governance Fit for Purpose?
The Islamic Finance Council UK (IFC) and the International Shari’ah Research Academy for Islamic Finance (ISRA), in association wih K&L Gates invite you to an event addressing the Shari’ah governance model. The event will include the UK launch of the IFC and ISRA External Shari’ah Audit Report 2016.
Event Themes
The event will cover several key themes including:
- How the current Shari’ah governance model works; its gaps and limitations
- Examining the role of scholars alongside areas of potential conflict and impairment
- The role of external Shari’ah audit
- Regulatory differences in approach – is there a ‘best practice’?
- Is it all about the fatwa? To what level are Islamic bankers individually and personally responsible?
Speakers will include:
- Sheikh Prof. Dr. Mohamed Ali Elgari, Member of ISRA Council of Scholars
- Dr Akram Laldin, Executive Director, ISRA
- The Lord Sheikh, Conservative Muslim Peer
- Jonathan Lawrence, Partner, K&L Gates LLP
- Iqbal Asaria CBE, Associate, Afkar Consulting Ltd
- Dr Marjan Muhammad, Director of Research, ISRA
- Arshadur Rahman, Manager - Shari’ah Compliant Facilities Project, Bank of England
- Sheikh Haytham Tamim, Founder, Shariah Solutions
- Omar Shaikh, Advisory Board Member, IFC
To register for the event click below:
+ View more Islamic Finance related material on K&L Gates HUB
HH Emir Sanusi delivers keynote at Shared Values workshop
On the 28th of May 2016, the IFC together with the Church of Scotland held the first in its three part workshop series to identify a ethical finance shared values principles framework.
Held at the Dalmahoy Estate, the round table workshop bought together leading global theologians, scholars and practitioners and follows the joint venture announcement made earlier in the year (see FT / BBC coverage). The first workshop took a historical perspective to explore the events, people and ideas that have shaped faith discussions on ethical finance. Along with the key note from HH Emir Sanusi, presentations were made by , Rev. Richard Fraser, Sheikh Ruzwan, Prof. Robbie Mochrie and Dr Akram Laldin.
The content revolved around an enquiry on the following points:
- Theological perspectives on ethical finance and just economy.
- Philosophical underpinnings of ethical finance.
- The teleology of economy in Christianity and Islam.
- Mapping a history of the ethical finance movement in relation to the religious teachings that informed it.
- The socio-theological origins of Savings Banks movement in Scotland.
- Contextual factors to the rise of alternative financial models and the role of Christianity and Islam in facilitating such initiatives.
The next round table workshop is planned for later in the year in London. To find out more or to participate contact info@ukifc.com
Umer Suleman recognised as a 'Rising Star of the City'
The Top 30 future leading figures in the City were recognised and celebrated in this years Brummell publication. A rigorous judging panel reviews nominations and this year Umer Suleman was successfully recognised for outperforming in his market and for giving back to make the world a better place.
As noted in Brummell, 'Suleman is an experienced risk SME who has assumed various risk roles during his career. He co-heads HSBC’s Muslim Network and used his experience to run a workshop on leadership and creating effective networks for City employees. He is an executive manager for the Islamic Finance Council on a pro-bono basis and one of the founding partners of Affogato, an ethical artisanal coffee and gelato shop. He previously took a sabbatical to join the Mosaic charity, which helps people from disadvantaged backgrounds.'
for more information click here
IFC welcomes new Board Member - Ajmal Bhatty
Continuing its strong growth the UKIFC takes on its first international Board Member.
Ajmal Bhatty is a thought leader and pioneer in takaful and ethical investment solutions, Ajmal has over 35 years of international experience (17 years at C-level) in financial services sectors. He has been instrumental in developing and managing insurance institutions in challenging environments. An actuary by profession, Ajmal has provided advisory and technical support to regulators and standard setting bodies on Takaful in several jurisdictions in the Middle East and Malaysia.
Tariq Masood, UKIFC Chairman, commented "Ajmal brings a wealth of experience in Takaful which complements well the skill set of the existing Board. We are delighted to have Ajmal join the UKIFC which is fundamentally built on the goodwill and tireless efforts of our team."
On joining the UKIFC Board, Ajmal commented, "UKIFC is one of the most effective platforms in the promotion and development of Islamic Finance and probably the only most active platform for identifying interfaith shared values with Islamic Finance; this is most commendable for the general awareness and promotion of Islamic Finance in the context of Ethical Finance.
Takaful and Micro-takaful have not had similar promotion and development in terms of customer recognition of their ethical dimensions when compared to their conventional counterparts. There is still a disconnect with takaful of the various areas of Islamic Finance such as project finance, long term sukuks and private equity initiatives. Takaful is perceived more as a product than a system. Whilst it is the industry itself that needs to address such issues, the platform of UKIFC can be a great catalyst in debating the issues and bringing about a change in the current status quo and in the mind set of regulators, entrepreneurs and practitioners.
As a member of the advisory board of UKIFC, I would address pertinent issues and areas that would enable it to support the promotion, growth and development of Takaful in areas and markets currently not yet developed, or where it is in initial stages of development. This would be the OIC markets as well as markets where Takaful should appeal to everyone on ethical grounds. Islamic micro-finance and micro-takaful are very much needed. Working with government bodies as well as the private sector, UKIFC can be instrumental in bringing micro-solutions to several Muslin countries by helping to develop specific regulations, guidelines, training programs and by mobilizing relevant resources through NGO’s and takaful companies in helping to develop viable propositions for financial inclusion and protection of the masses.
Christians and Muslims unite to tackle banking crisis
The Church of Scotland and Islamic Finance Council UK have announced a partnership to create ethical financial services.
The joint venture will draw on how the Christian and Muslim communities have supported ethical finance in the past and examine the practical commercial viability of new models which can tackle inequality and poverty. This pioneering initiative is the first time the Church and Islamic finance have come together to collaborate and will aim to create solutions open to everyone regardless of religious or ethnic background.
This initiative has come into being through a shared belief that existing financial institutions have in recent years lost their social conscience. Following the banking crisis of 2008, further ongoing scandals of mis-selling payment protection and interest rate fixing have raised the question if reforms have worked. We believe this is an exciting opportunity for faith groups to work together on solutions which will benefit the whole of society, regardless of faith or belief.
On announcing the project Rt. Rev Dr Angus Morrison, Moderator of the General Assembly of the Church of Scotland, said: “In 2012 the Church of Scotland’s special commission on the purpose of economic activity identified human flourishing and the protection of the planet for future generations as two of the most critical purposes for financial interaction. Our current system has gone badly wrong, creating massive inequality and the destruction of our shared natural resources by money-making machines overtaking commerce that serves the common good.
“The Christian and Islamic faith traditions share a commitment to economic justice and a call to an equal distribution of the gifts of God. By collaborating and “putting our money where our morals are” we have an opportunity to live out our common values and make a tangible change for those most affected by poverty. Active concern for our communities is an obligation and we look forward to meeting the challenge together.”
The Islamic Finance Council UK (IFC) is inspired by a commitment to developing a fairer, more responsible finance system. It has been recognised globally for its work in promoting shared values and increasing connectivity between ethical and Islamic finance stakeholders across the UK. For more than 5 years the IFC has been leading the debate on ethical finance through a series of events based in Edinburgh.
IFC Advisory Board Member Omar Shaikh said: “In recent years we have developed a strong relationship with the Church of Scotland and this project is a result of that positive engagement and the mutual desire to work collaboratively on a project which brings together the best of our respective faiths. The positive message of faith groups working together presents a beacon of light which we hope can inspire many others across the world.
“Scotland has a proud heritage in ethical finance with the savings bank movement able to trace its origins back to the Rev. Henry Duncan of the Church of Scotland. This model was also used as the blueprint for the early Islamic banking attempts in the 1960s, which makes it particularly poignant that this new initiative in being led in Scotland.”
The project will research, shortlist, test and then establish a viable ethical finance business solution. The consultation and business plan phase is expected to last a year, with the first workshop to take place this May in Edinburgh with theological and financial experts coming to Scotland from as far afield as Nigeria, Malaysia and Bahrain.
Additional Notes
International Islamic Finance
Worth over $2trn, the Islamic finance sector has witnessed tremendous growth over the past decade. Moving forward a key growth strategy for Islamic financial institutions will be their ability to successfully enter and tap the considerably larger ethical finance arena. Along with the commercial opportunity, by focusing on the inherent convergence in ethical values will increase the appeal of Islamic finance in new global markets and allow an avenue to address the aspirational dissatisfaction growing within the industry as witnessed by key stakeholders raising concerns over excessive synthetic imitation of conventional structures.
Africa and Nigeria specifically is well known for its triple heritage. Often referred to as non-interest finance, Nigeria has been taking a lead in developing this sector to promote financial inclusion. Ex-Governor of the Central Bank of Nigeria, HH Emir Sanusi commented, “One immediate success of this initiative is how it is bringing together faith communities on their common values. This is powerful example that many globally can take from, including us in Nigeria. Well done to the Islamic Finance Council UK and the Church of Scotland for showing their vision, leadership and bravery.”
Islamic finance in Malaysia has taken considerable market share and attracted many Chinese Malays and those not of the Islamic faith. Dr Akram Laldin, CEO of Malaysia based Bank Negara body ISRA commented, “Islamic finance is founded on moral and ethical values and these values are shared by different faiths. This joint venture with the Church demonstrates that people from different faiths can work together on the common ground that we share. Together we can strive for the betterment of humanity.”
Scottish communities show leadership
Minister for Europe and International Development, Humza Yousaf, said: “Ethical finance offers a great opportunity to diversify Scotland’s financial services industry, allowing it to grow and prosper. I’m delighted to see the Islamic Finance Council’s hard work in this field acknowledged by the EFICA. The Scottish Government is committed to creating a more socially responsible and fairer economy in Scotland and is building upon our progress to become a worldwide industry leader in the field.”
Since the issuance to the public, in 2013, of its report on the purpose of economic activity the Church of Scotland has promoted a range of new initiatives including the development of the Churches Mutual Credit Union in partnership with other UK churches and support for WEvolution, a pioneering movement developing Self Reliant Groups and social enterprise in Scotland’s poorest communities.
Rev Sally Foster-Fulton, convener of the Church of Scotland’s Church & Society Council said: “In the Church we don’t just want to talk about how we need to do things differently. We want to demonstrate how we can and are. Working with the Islamic Finance Council UK is an important part of that work. Not only are we trying to build a fairer economy together. We are also building vital friendships and relationships across our faiths. That is also really significant in today’s world where these relationships are so often defined by division.”
Scotland’s leading Sunni Muslim theologian, Shaykh Ryzwan commented, “Today marks the beginning of extensive consultation between Muslim faith representatives headed by IFC and its associates and the Church of Scotland on working towards a shared principles framework distilled from the intellectual legacy of the two great faith traditions that will inform the debate on ethical and sustainable models of economy. As the financial crisis of the last decade is being pushed firmly to the back of the collective memory, the systemic non-sustainability of the current financial model further amplifies the need to highlight alternative practice that places human nurturing and the environment at the core of deliberation on what economy should be.
In doing so, it also engages those that question the relevance of religion in the creation of the common good, and provides a new model of Interfaith engagement - moving from dialogue to action. The Scottish context of this initiative, with its unique history in the development of the Enlightenment, in ethical banking as well as its pioneering ecumenical work, serves as the perfect environment in which to embark on this journey.”
UK leading innovation as a global financial hub
Prime Minister David Cameron has stated the UK’s position as a center for Islamic finance. As the first Western government to issue a sovereign sukuk, today’s pioneering development of interfaith collaboration showcases the UK’s ability to innovation and contribute to the global Islamic finance sector.
Lord Sheikh, Patron of the Islamic Finance Council UK and Co-Chair of the All-Party Parliamentary Group on Islamic Finance and Diversity in Financial Markets, said, “The UK has successful positioned itself as the leading Western Hub for Islamic finance with over £20bn in shariah-compliant assets. This pioneering retail focused initiative presents a great opportunity to build not only a robust sustainable business but also demonstrates British communities working together building stronger, interdependent communities.”
For more information contact:
Chris Tait, Islamic Finance Council UK
(m) 07931103573
Rob Flett, Communications Manager, Church of Scotland
rflett@churchofscotland.org.uk
(m) 07764 335793
About the Islamic Finance Council UK
The Islamic Finance Council UK (IFC) is a specialist advisory and development body established to promote and enhance the global Islamic and ethical finance industry. Operating since 2005, the IFC Executive Board brings together a unique blend of seasoned practitioners who are recognised leaders in the Islamic finance market and have worked for leading global institutions. The Council has successfully pioneered a number of unique developmental and educational programmes.
About the Church of Scotland
The Church of Scotland is Scotland’s national church and is also one of the UK’s largest charities. It serves almost 400,000 members, with more regularly involved in local congregations and our community work. Within the organisation, the Church has around 800 ministers serving in parishes and chaplaincies, supported by professional and administrative staff. The Church has a proud tradition of working to benefit those less well off in society, and campaigns on a range of economic and social welfare issues.
END.
Christians and Muslims unite to tackle banking crisis
The Church of Scotland and Islamic Finance Council UK have announced a partnership to create ethical financial services.
The joint venture will draw on how the Christian and Muslim communities have supported ethical finance in the past and examine the practical commercial viability of new models which can tackle inequality and poverty. This pioneering initiative is the first time the Church and Islamic finance have come together to collaborate and will aim to create solutions open to everyone regardless of religious or ethnic background.
This initiative has come into being through a shared belief that existing financial institutions have in recent years lost their social conscience. Following the banking crisis of 2008, further ongoing scandals of misselling payment protection and interest rate fixing have raised the question if reforms have worked. We believe this is an exciting opportunity for faith groups to work together on solutions which will benefit the whole of society, regardless of faith or belief.
On announcing the project Rt. Rev Dr Angus Morrison, Moderator of the General Assembly of the Church of Scotland, said: “In 2012 the Church of Scotland’s special commission on the purpose of economic activity identified human flourishing and the protection of the planet for future generations as two of the most critical purposes for financial interaction. Our current system has gone badly wrong, creating massive inequality and the destruction of our shared natural resources by money-making machines overtaking commerce that serves the common good.
“The Christian and Islamic faith traditions share a commitment to economic justice and a call to an equal distribution of the gifts of God. By collaborating and “putting our money where our morals are” we have an opportunity to live out our common values and make a tangible change for those most affected by poverty. Active concern for our communities is an obligation and we look forward to meeting the challenge together.”
The Islamic Finance Council UK (IFC) is inspired by a commitment to developing a fairer, more responsible finance system. It has been recognised globally for its work in promoting shared values and increasing connectivity between ethical and Islamic finance stakeholders across the UK. For more than 5 years the IFC has been leading the debate on ethical finance through a series of events based in Edinburgh.
IFC Advisory Board Member Omar Shaikh said: “In recent years we have developed a strong relationship with the Church of Scotland and this project is a result of that positive engagement and the mutual desire to work collaboratively on a project which brings together the best of our respective faiths. The positive message of faith groups working together presents a beacon of light which we hope can inspire many others across the world.
“Scotland has a proud heritage in ethical finance with the savings bank movement able to trace its origins back to the Rev. Henry Duncan of the Church of Scotland. This model was also used as the blueprint for the early Islamic banking attempts in the 1960s, which makes it particularly poignant that this new initiative in being led in Scotland.”
The project will research, shortlist, test and then establish a viable ethical finance business solution. The consultation and business plan phase is expected to last a year, with the first workshop to take place this May in Edinburgh with theological and financial experts coming to Scotland from as far afield as Nigeria, Malaysia and Bahrain.
International Islamic Finance
Worth over $2trn, the Islamic finance sector has witnessed tremendous growth over the past decade. Moving forward a key growth strategy for Islamic financial institutions will be their ability to successfully enter and tap the considerably larger ethical finance arena. Along with the commercial opportunity, by focusing on the inherent convergence in ethical values will increase the appeal of Islamic finance in new global markets and allow an avenue to address the aspirational dissatisfaction growing within the industry as witnessed by key stakeholders raising concerns over excessive synthetic imitation of conventional structures.
Africa and Nigeria specifically is well known for its triple heritage. Often referred to as non-interest finance, Nigeria has been taking a lead in developing this sector to promote financial inclusion. Ex-Governor of the Central Bank of Nigeria, HH Emir Sanusi commented, “One immediate success of this initiative is how it is bringing together faith communities on their common values. This is powerful example that many globally can take from, including us in Nigeria. Well done to the Islamic Finance Council UK and the Church of Scotland for showing their vision, leadership and bravery.”
Islamic finance in Malaysia has taken considerable market share and attracted many Chinese Malays and those not of the Islamic faith. Dr Akram Laldin, CEO of Malaysia based Bank Negara body ISRA commented, “Islamic finance is founded on moral and ethical values and these values are shared by different faiths. This joint venture with the Church demonstrates that people from different faiths can work together on the common ground that we share. Together we can strive for the betterment of humanity.”
Scottish communities show leadership
Minister for Europe and International Development, Humza Yousaf, said: “Ethical finance offers a great opportunity to diversify Scotland’s financial services industry, allowing it to grow and prosper. I’m delighted to see the Islamic Finance Council’s hard work in this field acknowledged by the EFICA. The Scottish Government is committed to creating a more socially responsible and fairer economy in Scotland and is building upon our progress to become a worldwide industry leader in the field.”
Since the issuance to the public, in 2013, of its report on the purpose of economic activity the Church of Scotland has promoted a range of new initiatives including the development of the Churches Mutual Credit Union in partnership with other UK churches and support for WEvolution, a pioneering movement developing Self Reliant Groups and social enterprise in Scotland’s poorest communities.
Rev Sally Foster-Fulton, convener of the Church of Scotland’s Church & Society Council said: “In the Church we don’t just want to talk about how we need to do things differently. We want to demonstrate how we can and are. Working with the Islamic Finance Council UK is an important part of that work. Not only are we trying to build a fairer economy together. We are also building vital friendships and relationships across our faiths. That is also really significant in today’s world where these relationships are so often defined by division.”
Scotland’s leading Sunni Muslim theologian, Shaykh Ruzwan commented, “Today marks the beginning of extensive consultation between Muslim faith representatives headed by IFC and its associates and the Church of Scotland on working towards a shared principles framework distilled from the intellectual legacy of the two great faith traditions that will inform the debate on ethical and sustainable models of economy. As the financial crisis of the last decade is being pushed firmly to the back of the collective memory, the systemic non-sustainability of the current financial model further amplifies the need to highlight alternative practice that places human nurturing and the environment at the core of deliberation on what economy should be.
In doing so, it also engages those that question the relevance of religion in the creation of the common good and provides a new model of Interfaith engagement - moving from dialogue to action. The Scottish context of this initiative, with its unique history in the development of the Enlightenment, in ethical banking as well as its pioneering ecumenical work, serves as the perfect environment in which to embark on this journey.”
UK leading innovation as a global financial hub
Prime Minister David Cameron has stated the UK’s position as a center for Islamic finance. As the first Western government to issue a sovereign sukuk, today’s pioneering development of interfaith collaboration showcases the UK’s ability to innovation and contribute to the global Islamic finance sector.
Lord Sheikh, Patron of the Islamic Finance Council UK and Co-Chair of the All-Party Parliamentary Group on Islamic Finance and Diversity in Financial Markets, said, “The UK has successful positioned itself as the leading Western Hub for Islamic finance with over £20bn in shariah-compliant assets. This pioneering retail focused initiative presents a great opportunity to build not only a robust sustainable business but also demonstrates British communities working together building stronger, interdependent communities.”
CityUK Islamic Market Advisory Group Chair, Stella Cox, said, '
The UK is a world leading centre for Islamic Finance, and its industry stakeholders have been proactively seeking to further the development of Islamic finance through engagement with a more universal audience. Research currently being undertaken, supports the assertion that socially responsible investment principles can combine effectively with the ethical and prudent financial screening procedures of Islamic and faith-based finance to support sustainable, economic growth and a more measured approach to global, financial practice. Amongst these initiatives, the award-winning IFC EFRT round table series has demonstrated that there are a great many shared values to provide a foundation for further collaboration.
The City, as a financial hub, has long since shown that it is open for business and that it welcomes innovation....Further defining and shaping our shared ‘ethics’, as we progress, is a debate to which the faith communities can meaningfully contribute, with the common objective of proving a model that motivates and inspires our global partners.'
Funding social housing, IFC Ethical Finance round table
The Islamic Finance Council UK and hosts Maclay Murray & Spens LLP (MMS) last week held the 10th in the series of the award-winning Edinburgh Ethical Finance Round Tables.
The session included a presentation from Susan Torrance on the Scottish Government’s social housing policy as well as Ian Watt, of Aberdeen YMCA, and Steve Williams, of INTEGRATE, who presented on the European Long-Term Investment Funds (ELTIF) which was discussed within the context of the wider European economic policy, the “Juncker Plan” and investment in social infrastructure. If you would like a copy of the slides please contact chris@ukifc.com
An update on the Scottish Ethical Finance Hub was provided by Omar Shaikh. The Hub will be hosted at Heriot Watt University in Edinburgh and is the first such dedicated hub for ethical finance in the UK. To find out how you can get involved in the Hub then please contact Graham Burnside or Omar.
We would like to thank MMS for hosting the recent event and to all participants for their continued engagement in driving the ethical finance agenda forward.
Developing Islamic Finance in Poland
CASE, together with the Polish Economic Association and Ministry of Finance, invite the UKIFC to present at Islamic finance roundtable in Warsaw, Poland.
Although Islamic banking and finance (IBF) is definitely not an innovation in the strict sense of the word (its roots reach VII century), it is only relatively recently that bankers and financiers around the world – also in non-predominantly Muslim countries – started appreciating the opportunities it offers. As stressed by CASE President, Christopher Hartwell, in his opening speech, this interest grew stronger after the global financial crisis of 2007-2008, when Islamic banks proved to be more resistant to financial turbulences than their traditional interest-based counterparts.
Money cannot create money – main features of Islamic Finance
The most important aspect that distinguishes Islamic finance from traditional one concerns the nature of money. As the first keynote speaker during the 'Innovative approaches to finance: The Islamic experience in Europe' seminar, which took place on February 9th 2016 in Warsaw, Katarzyna Sidło from CASE, explained, according to shariʿa principles, money does not carry any value in itself, as so cannot create new money; only labor can. Furthermore, Islam prohibits charging interest (riba) and speculation. What is more, each part of a financial contract should be precisely described and understandable for every person involved in the transaction, so as to avoid information asymmetry and excessive uncertainty (gharar). As a result, traditional Islamic contracts (such as mudarabah and msharakah) are based on the profit and loss sharing (PLS) schemes. Additionally, all financial transactions have to be asset-based. As Katarzyna Sidło emphasized, Islamic financial contracts are often very similar to the conventional ones, only terminology is different. Mudarabah is akin to limited partnership, while musharakah resembles general partnership. Islamic finance offers also bonds which are called sukuk and lease services (in Arabic ijara). Given the fact that there are different schools of interpretation of Islam, also financial instruments differ. This cause some problems in transactions where different variations of the same products are used. Standardisation comes as the only solution, but the process is very slow.
Islamic finance is not just for Muslims
In the last few years Islamic banking has become more and more popular in Europe. According to EY, between 2009 and 2013 an annual growth of value of the Islamic financial assets amounted to 17.6 per cent; in 2013 it reached 1.7 trillion dollars. There are many different models of implementation of IBF in Europe to exploit the potential of Islamic finance but two of them, used in Luxembourg and the UK, are especially interesting. As Zeeshan Ahmed from EY Luxemburg clarified, one of the alternative ways of investing is shariʿa-compliant asset management. Luxembourg has lately become one of the leading non-Muslim domiciles which offer favorable environment for the creation of Islamic investment vehicles and cross-border retail funds (those instruments are dedicated particularly for investors from the Gulf). It is also the 1st Eurozone country that issued a sovereign Sukuk in response to the recent surge in investor demand for Islamic finance instruments.
Another country that is positioning itself as a Islamic finance hub in Europe is the United Kingdom. According to Omar Shaikh, Islamic Finance Council United Kingdom, the UK is the leading western country and Europe’s premier center for Islamic finance. This is to a large extent a result a political will and support on behalf of the British government, including for example the removal of double tax on and extension of tax relief on Islamic mortgages. Development of Islamic finance has been promoted particularly by the two last Prime Ministers, namely Gordon Brown and David Cameron. In 2013 the United Kingdom hosted, as the first non-Muslim country, the World Islamic Economic Forum. As a result, currently there are six fully shariʿa-compliant banks in the UK and in 2014 the UK government, as a first non-predominantly Muslim and a first European country issued a sovereign Sukuk. Islamic financial instruments were used to finance construction of the Olympic Village, the Shard, Battersea Power Station regeneration, London Gateway.
As all the keynote speakers underlined, it is worth looking closer at and following examples of both Luxemburg and the UK – Islamic finance is the fastest growing segment of the financial industry, which potential reaches far beyond the Muslim world.
***
The seminar 'Innovative approaches to finance: The Islamic experience in Europe' was organized by CASE in cooperation with Narodowy Bank Polski, Centre for International Initiatives and the Polish Economic Association as a part of an effort to broaden the understanding of Islamic finance in Poland. High attendance during the seminar confirms that there more and more people in our country become interested in Islamic banking.
***The above article is taken from the CASE website, published 10-2-2016
Scottish Ethical Finance Hub launches at Heriot-Watt University
An ethical finance hub will be announced tonight at Heriot-Watt University’s Edinburgh campus, establishing Scotland as a leader in this field. The Scottish Ethical Finance Hub (SEFH), which has received backing from the Scottish Government as well as leaders in the financial sector, will be based at Heriot-Watt University and become a centre for the promotion and development of ethical finance practice.
The SEFH concept has emerged from a series of roundtables held over five years, initiated by the Islamic Finance Council UK (UKIFC). Participants have represented a broad range of sectors including banking, asset management, faith groups, academia, government and the third sector.
Dr Robbie Mochrie, Associate Professor of Economics at Heriot-Watt University and a member of the SEFH steering group, added: “Since the crash in 2008, there has been a growing international demand for more ethical financial practices, whether that’s developing rules that people can sign up to, or principles and behaviours that are considered ethical.
“In hosting the Hub’s initial development, Heriot-Watt University can be a critical friend of the financial services sector. Our academics have expert knowledge of how the various markets and practices work, but don’t directly work in them. We’re able to question and hopefully point the way towards more ethical practice.”
Graham Burnside, consultant at Shepherd and Wedderburn LLP and Chairman of the SEFH steering group said: “In the coming months we’ll be focusing on what ethical finance in Scotland can and should involve, and how we can link in with international markets.
“Ethical finance is a rapidly growing segment of the financial services sector and there’s huge opportunity for Scotland to build on its distinguished heritage. The Hub can be an excellent channel to further this agenda and promote Scotland as a key global centre in this developing field.”
Deputy First Minister and Cabinet Secretary for Finance, Constitution and the Economy John Swinney MSP said
“The Scottish Ethical Finance Hub will see the Islamic Finance Council work with Heriot Watt University to develop a model that has the potential to make a real impact internationally.
“I’m pleased to say the Scottish Government is supporting this project with up to £50,000 of funding, which will allow Scotland to capitalise on the increased global profile of ethical finance and progress towards becoming a worldwide industry leader in the field.”
The SEFH will begin its residency at Heriot-Watt University on Thursday 29 October with a discussion on how businesses can build a more sustainable world through ethical finance, focusing on existing challenges and potential solutions. As well as Dr Robbie Mochrie speakers will include Omar Shaikh, advisory board member of the UKIFC and Ryan Smith, head of corporate governance and SRI at Kames Capital, an investment management firm.
Scotland’s reputation within the ethical finance sector has had a series of recent boons. In September 2015, over 250 finance and investment professionals from across the globe came to Edinburgh for the inaugural Global Ethical Finance Forum. This was quickly followed by the UKIFC winning the prestigious Industry Development Award at the Ethical Finance Challenge and Innovation Awards in Dubai.
ENDS
Media contact: For Heriot-Watt enquiries, please contact Sarah McDaid, Pagoda PR (0131 556 770/ sarah.mcdaid@pagodapr.com )
FOR SEFH enquiries, please contact Chris Tait chris@ukifc.com Tel: 07931103573
Notes to editor
About SEFH
The SEFH concept can be framed in the context of a rapidly developing and varied global ethical finance industry, including:
- Retail finance – UK retail banks are currently exploring how to embrace ethical practice to restore their reputations; speciality banks, such as Triodos and Charity Bank, are developing their niche; and credit unions offer a path to community-based retail banking.
- Funds management – asset managers responding to client demand for investment activities under labels such as ethical, responsible, or sustainable. UK government policy seems likely to increase the role of social investment vehicles in the provision of public goods.
- Islamic finance – an area in which London has played a prominent global role, and which might be a source of foreign direct investment, infrastructure finance, funds for asset management and new entry into retail markets.
- Academia – working in partnership with Scottish HEIs, the Hub will bring together research capacity and the provision of executive training in the ethical finance sector including contemporary trends in SRI, ESG and social impact investing.
UKIFC global ethical finance prize winners
The Islamic Finance Council UK (UKIFC) saw off competition from over 200 organisations from across the globe to win the $100,000 Industry Development Award at the Ethical Finance Challenge and Innovation Award (EFICA) in Dubai. The prize was presented by keynote speaker and Nobel Peace Prize Laureate Dr Muhammed Yunus.
The award was recognition of the UKIFC’s work in establishing a programme of ethical finance events bringing together a range of stakeholders which now forms the UK’s leading discussion platform seeking to promote a fairer and more socially responsible financial system.
watch the video of the finalist
The UKIFC and fellow finalists, Malaysian sovereign wealth fund Khazanah Nasional Berhad and Bank Negara Malaysia backed ISRA, each delivered a 10 minute pitch to the 350 guests at the EFICA Gala Dinner who then voted for the winner.
UKIFC Advisory Board member and co-founder Graham Burnside commented: "It is tremendously exciting for us to have won this major award in the face of competition from much larger organisations based in the heartlands of Islamic finance and a very gratifying recognition of our work in bringing together the diverse strands of the ethical finance arena. The prize will make a genuine difference to what the UKIFC is able to achieve."
EFICA was launched in 2013 by Abu Dhabi Islamic Bank (ADIB) and Thomson Reuters with the aim of inspiring and recognising fresh ways of thinking and promoting the most dynamic actionable solutions that advance ethics in the world's financial services.
“Our winners are the future of the finance industry and thought leaders for a world in which working for profit and working for social good can and should be one and the same. Those recognised at these third annual EFICA awards have not only shown this to be true, they have taken bold new steps in expanding the possibilities of ethical finance," said ADIB CEO Tirad Al Mahmoud.
The UKIFC’s success has been recognised by the Scottish Government:
“Ethical finance is an area where Scotland has a real opportunity to make an impact and success at EFICA has raised the profile of the ethical finance sector here in Scotland as well as raising Scotland’s profile internationally,” commented John Swinney, Cabinet Secretary for Finance and Sustainable Growth.
The other prizewinners on the evening were crowdfunding platform Narwi and former UN Secretary General Kofi Annan, who received the lifetime achievement award.
[Oct2015]
For more information contact:
Chris Tait - chris@ukifc.com
Media coverage:
http://finance.salaamgateway.com/en/finance/story/SALAAM04102015194010
http://www.heraldscotland.com/business/13836028.Islamic_Finance_Council_wins__100_000_award/?ref=rss