The Institute For Financial Analysts

ISLAMIC FINANCE

The end of the twentieth century has witnessed the emergence of a new field of banking known as Islamic Banking. This field has enjoyed rapid growth and it is expected that it will attract around $1 trillion by the end of 2010.

“In its nascent history spanning three decades, Islamic banking and finance has undergone rapid growth and transformation. From an industry striving to fulfill the religious obligations of the Muslim community, it is now a multi-billion dollar industry driven by well-defined business considerations and profit optimization, whilst steadfastly upholding the Islamic principles. Indeed, this progress has been achieved against a challenging global financial and economic environment”, Dr Zeti Akhtar Aziz, Governor of the Central Bank of Malaysia.

The Islamic capital market, in particular, the Islamic debt market, has also experienced rapid growth since its emergence in the 1990s. The issuance of Islamic bonds has expanded steadily at an average growth rate of 33.7% since 1995. New innovative Islamic financial instruments such as Islamic asset-backed securities have also emerged and the financial structures underlying Islamic securities have become more diversified. The number of Shariah-based unit trust funds has also grown consistently over the years. The rapid growth of Islamic unit trusts comprising a variety of bond funds, equity funds and balanced funds increases the efficiency and potential of the Islamic financial system as an intermediation channel by providing investors access to professional asset management that is based on their distinct risk tolerance levels.

ISLAMIC ECONOMIC SYSTEM

An Islamic economic system is a collection of institution, i.e., formal and informal rules of conduct and their enforcement characteristics, designed by the Law-Giver (God) through rules prescribed in the Quran, operationalized by the Sunnah of the Prophet and extended to new situations by Ijtihad- to deal with the allocation of scarce resources, production and exchange of Goods and services and distribution of the resulting income and wealth.

The Islamic economic system is a rule-based system funded on the principles of preservation of property rights and sanctity of contracts. Beginning from the notion property as a sacred trust, the Sahriah ensures the protection from any exploitation through unjust and unfair dealings. Prohibition of Riba (Interest) and the elimination of contractual ambiguity (Gharar) and other forms of exploitation are some of the implications of these core principles.

The economic activities in any economic system can be viewed as contracts between economic agents. In Islam, a contract is deemed legal and lawful by the Shariah if the terms of the contract are free of any prohibition.

Hence, the Islamic economic system has a set of core contracts, which serve as building blocks for designing more complex and sophisticated instruments.

To understand these building Blocks and promote higher standards in Islamic Finance, IFA just became an accredited Training Provider for the Islamic Finance Qualification (IFQ).

IFA, The Institute For Financial Analysts (IFA) is a firm specialized in training courses for professional designations, and seminars for business decision makers. IFA offers preparatory courses for the Chartered Financial Analyst (CFA®), Financial Risk Manager (FRM®), Certificate in Banking Risk & Regulation (CBRR), and Certified Valuation Analyst (CVA®) programs. Our seminars cover a wide range of subjects including Financial Modeling, Private Banking, Corporate Restructuring, Credit Risk Measurement and Management, Market Risk Measurement and Management and Operational Risk Measurement and Management, etc, Specialized Valuation courses (Real Estate Ventures or Oil and Petrochemical) etc.

The institute has just signed an agreement with Securities & Investment Institute (SII) which is based in London to start offering training for the Islamic Finance Qualification (IFQ). IFA offers a multitude of review courses in Kuwait, Saudi Arabia, United Arab Emirates, Qatar, Bahrain, Jordan and Cairo and have been expanding at an impressive rate. IFA faculty holds the CFA charter, FRM certification, CVA designation, IFQ or Ph.D. in Finance or Accounting with years of teaching experience.

ISLAMIC FINANCE QUALIFICATION (IFQ)

I. Background

The Islamic Finance Qualification (IFQ) covers Islamic finance from both a technical and Sharia’a perspective, providing the first international benchmark in the area of Islamic finance.

IFQ will be managed through an IFQ Institute established by the partnership between the Securities & Investment Institute (SII) and Ecole Supérieure des Affaires (ESA).

II. Aim of the Examination

To provide an international benchmark qualification that will equip candidates with a practical understanding of Islamic finance, including Sukuk, Takaful, Mudaraba, Musharaka and Murabaha – and much more;
To provide candidates with an understanding of the influence of Sharia’a in a business context;
To prepare candidates to hold key positions in the Islamic finance and Takaful (Islamic Insurance).

III. Objectives of the Examination

To test candidates’ knowledge of:

The general principles of Islamic Finance
Islamic contracts
Islamic banking activities
Financial statements in Islamic banks
Governance in Islamic institutions
Islamic investment funds
Islamic Bond Market - Sukuk
Islamic Insurance - Takaful

The IFQ will be offered in both Arabic and English.

ISLAMIC FINANCE QUALIFICATION (IFQ) - CONTINUED

IV. Who Should Attend

There are no prerequisites for this qualification.

The qualification is aimed at staff working in Sharia’a compliant finance, trade, investment and insurance, but is also available for candidates who are not yet in employment or those seeking a career in Islamic finance.

V. Assessment Structure

IFQ is a 2 hour examination consisting of 100 multiple choice questions.

VI. Examination Venue

The assessment is available globally by Computer Based Testing in a secure system with instant results.

VII. Examination Dates

Tests could be taken in the morning or afternoon on any chosen date (subject to availability).

VIII. Examination Fees

The cost of the examination is GBP£150.

IX. Program Timeline

The IFQ requires approximately 80 - 100 hours of personal study time.

X. Pass Mark

The pass mark is set at 70%.

XI. Qualification Registration Form

All candidates are required to complete a Qualification Registration Form (QRF) when registering for the IFQ 48 hrs before examination (subject to availability):