The
President/Chief Executive,
All Banks,
Dear
Sir/Madam,
FIT
AND PROPER CRITERIA FOR SHARIAH ADVISORS
Please refer to Para
2 of IBD Circular No. 2 dated March 20, 2007 in terms of
which a period of six months was allowed to Shariah Advisors
of Islamic Banking Institutions (IBIs) who are working in
an executive/non-executive position in another financial
institution, except working as Shariah Advisor of mutual
fund of the same IBI, to regularize the position by relinquishing
either of the posts.
2.
For the purpose of Fit & Proper Criteria for Shariah
Advisors, Takaful companies shall be included in the definition
of financial institutions.
3.
The existing period by which Shariah Advisors were required
to regularize their position as indicated in para 1, has
now been extended till June 30, 2008. Therefore, Shariah
Advisors working for an IBI and holding any executive/non-executive
position in any other financial institution, except as Shariah
Advisor of Islamic mutual funds of the same IBI, shall now
be required to regularize the position and relinquish either
of the posts by June 30, 2008.
4.
All Islamic banking institutions are required to submit
a compliance report from Shariah Advisor of their bank to
this effect till July 7, 2008.
5.
Please acknowledge receipt.