The Kuwaiti financial regulator, the Capital Markets Authority (CMA), has issued a statement warning the country’s Shari’ah-compliant financial institutions to ensure they employ the right number of properly qualified Islamic finance practitioners.
Although the statement does not have any legal force and does not count as a set of regulations, it is a very clear recommendation for players in Kuwait’s Islamic finance sector to make certain they have appointed ‘a sufficient number of observers’.
The CMA also called on institutions to offer a ‘commitment to full transparency’ in their dealings with Shari’ah compliance functions.
Read more: http://www.gulfbase.com/news/kuwait-capital-markets-authority-spotlights-potential-weakness/229165
More transperancy?? Ever since the CMA was established that's all they've been obsessed with. Deeling room traders have to report their transaction on an HOURLY basis in Kuwait, not to mention the detailed reports asset managers now have to report about their every investment. In my opinion, this is just more red tape added to the pile of red tape that Kuwaiti financial institution are currently suffocating under.
ReplyDeleteNot cool CMA.
I believe they are calling for more transperancy in relation to the islamic finance industry. As many unqualified practicionars are structuring and underwriting islamic finance products. This is a move by the CMA to put together a consolidated review board for the islamic finance industry in Kuwait that oversees and unifies the laws regarding structuring products and handling deals. Bahrain, Qatar and the UAE have already begun this process and I believe Kuwait is now taking a hard look at it as well, seeing that islamic finance is high in demand and becoming a significant part of the economy in the GCC. However, you are correct with their history, they do talk alot.
ReplyDelete