51
TABLE 4: MAIN IFSB STANDARDS SPECIFICALLY RELATING TO T AKAFUL
Number Standard Date
IFSB-8
Guiding Principles on Governance for Takaful (Islamic
Insurance) Undertakings
December
2009
IFSB-11
Standard on Solvency Requirements for Takaful (Islamic
Insurance) Undertakings
December
2010
IFSB-14
Standard on Risk Management for Takaful (Islamic Insurance)
Undertakings
December
2013
IFSB-18 Guiding Principles for Re-Takaful (Islamic Reinsurance) April 2016
IFSB-20
Key Elements in the Supervisory Review Process
of Takaful/Re-Takaful Undertakings
December
2018
Source: Authors
The implication of the implementation of the IFSB standards can be viewed from a soft
regulatory perspective. This implies that once the IFSB issues its relevant standard, it does not
bind the members. Once the members adopt such standards and implement them in their
jurisdictions, such standards thereafter become binding on financial institutions operating in
such jurisdictions subject to the regulatory treatment accorded to such standards by the RSA.
Similarly, the AAOIFI included its Takaful standard in its published Shari'ah standards under No.
26 (AAOIFI, 2014). It is important to note that the RSAs in Bahrain, Oman, Pakistan, Sudan, Syria
and the United Arab Emirates have all adopted the AAOIFI standards. This makes the Takaful
standard amongst others binding on all TOs in such jurisdictions. In other countries, such as
Brunei Darussalam, Dubai International Financial Centre, France, Jordan, Kuwait, Lebanon,
Saudi Arabia, Qatar, Qatar Financial Centre, South Africa, UK, Canada, and United States, the
Shari'ah standard on Takaful is considered voluntary for adoption by operators in such
jurisdictions. However, in Malaysia and Indonesia, the RSAs only use the AAOIFI Shari'ah
standard on Takaful as a basis for formulating their national regulatory standards.
FIGURE 12: I MPLEMENTATION OF IFSB T AKAFUL STANDARDS BY REGULATORY AND SUPERVISORY
AUTHORITIES (2015-2016)
Source: IFSB (2017, p. 53)
50% 33% 33%
57% 57% 57%
0%
20%
40%
60%
I FSB - 8 I FSB - 11 I FSB - 14
2015 2016