Islamic financial services: SECP authorizes IFD officers to refer disputes to relevant forum

The Securities and Exchange Commission of Pakistan (SECP) has empowered officers of Islamic Finance Department SECP to refer any dispute or difference of opinion regarding a Shariah opinion between a company or an entity and its Shariah advisor to Shariah Board of the commission.
In this regard, the SECP has issued SRO 1246(I)/2017 here on Thursday. The commission has authorized officers of Islamic Finance Department (IFD) to refer any dispute or difference of opinion regarding a Shariah opinion within the meaning of these regulations between a company or an entity and its Shariah Advisor or between any two or more Shariah Advisors, to any relevant forum including the Shariah Board of the commission.
Under SRO1246 (I) /2017, the SECP hereby delegates its certain powers and functions to the officers of Islamic Finance Department. The SECP has empowered the executive director/head of Islamic Finance Department to deal with the issues of registration of Shariah advisor. They can determine eligibility for an individual, partner, director or chief executive of a firm, LLP or company if the person has adequate understanding of and experience in Shariah, legal, and financial issues pertaining to Islamic financial services.
The SECP has empowered executive director/head of Islamic Finance Department to require the applicant to furnish such additional information or clarification or documents, as it deems appropriate. The SECP has empowered the executive director/head of Islamic Finance Department to require an applicant to appear for an interview before any official of the Commission and/or any one or more members of the Shariah Board of the Commission in person or through video conferencing as deemed appropriate by the Commission.
They can register the applicant on being satisfied that the applicant is eligible and meets the fit and proper criteria as Shariah advisor subject to such conditions as may deem fit and renew the registration, on an application for renewal of registration for a Shariah advisor.
The SECP has empowered executive director/head of Islamic Finance Department to suspend a Shariah advisor, where a Shariah advisor fails to apply for renewal within the time given and approve change of partner, director or chief executive of Shariah advisor firm, LLP or company pursuant to an application for such change.
The SECP has empowered executive director/head of Islamic Finance Department to provide an opportunity of hearing to the applicant prior to the rejection of an application. The SECP has authorized executive director/head of Islamic Finance Department to refer any dispute or difference of opinion regarding a Shariah opinion within the meaning of these regulations between a company or an entity and its Shariah advisor or between any two or more Shariah advisors, to any relevant forum including the Shariah Board of the Commission.
The SECP has empowered executive director/head of Islamic Finance Department to impose restrictions on activities of Shariah advisor and/or suspend its name in the register of Shariah advisors, remove the name of Shariah advisor from the register of Shariah advisors and impose a penalty as provided in the Companies Act 2017.
The SECP has empowered executive director/head of Islamic Finance Department to impose such conditions as deem appropriate, while suspending a Shariah advisor and cancel registration of Shariah advisor , after providing a reasonable opportunity of representation, if a Shariah advisor,- (a) has been in violation of the regulations or failed to discharge its obligations under the regulations; (b) s/he is found guilty of fraud or any criminal offence; or (c) s/he has been suspended and the cause of suspension has not been removed within one-hundred-and-twenty (120) days from the receipt of the suspension order or such earlier period as provided through the order of suspension.
The Commission shall have the authority to exercise all powers delegated above to the commissioners and officers concurrently. In case the post of the executive director (Islamic Finance Department) is vacant or he/she is unable to perform his/her functions or he/she is unavailable to exercise the powers and functions delegated to him/her through this notification, powers and functions shall stand delegated to the commissioner who shall have the authority to exercise all powers so delegated, the SECP added.