Criteria for Shariah advisors revised

The State Bank has decided to revise and replace the 'Fit and Proper Criteria for Appointment of Shariah Advisers'. "In order to facilitate the Islamic banking institutions, the Shariah Board of State Bank of Pakistan has revised the 'Fit and Proper Criteria for Appointment of Shariah Advisors'.
Accordingly, it has been decided to replace 'Fit and Proper Criteria' as well as Form-SAP circulated earlier, with immediate effect," said a circular issued by the SBP on Wednesday.
All existing Islamic banking institutions have been advised to submit the duly filled in revised Form SAP in respect of Shariah Advisors appointed by them within 15 days of issuance of the circular, said the SBP.
Following are the new criteria.
EDUCATIONAL QUALIFICATION: Degree from any recognized Waffaqul Madaris (Darse-e-Nizami) with a minimum of Second Class Bachelor Degree with Economics.
OR Degree from any recognized Waffaqul Madaris (Darse-e-Nizami) with Takhassus Fil Fiqh and sufficient understanding of banking and finance.
OR Post-Graduate Degree in Islamic Jurisprudence/Usooluddin, LL M (Shariah), etc from any recognized University with exposure to banking and finance.
EXPERIENCE AND EXPOSURE: Must have at least 3 years experience of giving Shariah rulings; or at least 5 years experience in Research and Development in Islamic Banking and Finance. Reasonable knowledge of Arabic and English languages is necessary.
State Bank of Pakistan, at its sole discretion, can give relaxation in respect of educational qualification and experience in exceptional cases where the person is otherwise qualified for giving Shariah rulings on banking and financial matters.
TRACK RECORD: The Shariah Advisor must have an impeccable track record in social, economic and financial dealings.
Has not been terminated or dismissed in the capacity of employee or director/chairman from any institution, firm or a company.
SOLVENCY & FINANCIAL INTEGRITY: Has not been associated with any illegal activity, especially relating to banking business.
Has not been in default of payment of dues owed to any financial institution and/or default in payment of any taxes in individual capacity or as proprietary concern.
INTEGRITY, HONESTY AND REPUTATION: Has not been convicted of any criminal offence or involved in financial impropriety and moral turpitude.
Has not been subject to any adverse findings or any settlement in civil/criminal proceedings particularly with regard to investments, financial/business, misconduct, fraud, etc.
Has not contravened any of the requirements and standards of regulatory system or the equivalent standards of requirements of any regulatory authorities.
Has not been debarred for giving religious rulings by any religious institution/body.
CONFLICT OF INTEREST: Is not a Shariah Advisor of any other Islamic banking institution (IBI).
The conflict of interest shall not apply if a Shariah Advisor is nominated by the SBP in its own Shariah Board.