The recent Reuters' article on the GS Sukuk controversy contains some very helpful insights from Sh Dr Aznan Hasan:

Aznan Hasan, one of the scholars who signed the Goldman fatwa, said there were no sharia-related problems with the sukuk. The intention to list on the Irish exchange is purely for tax purposes, he said. But he added that Goldman should consider more measures to address doubts. 'I personally think the issue now is what is the mechanism to ensure that it is not traded, and even if it is traded, that it's traded at par, and they have to come up to us with a mechanism for that,' he told Reuters.

He said Goldman might issue an additional or complementary prospectus to address this aspect and describe how it would ensure proceeds of the sukuk were only used for sharia-compliant purposes. Goldman might also agree to issue a letter to its board of sharia scholars whenever it used the proceeds, or agree to quarterly audits, he added.

"If they can put all the mechanisms in there, then there shouldn't be any problem," said Hasan. "The murabaha is not a new one -- there is nothing new in the structure."

 

 

Here is another article from noted IF journalist, Mushtak Parker, on the controversial proposed Goldman Sachs' sukuk. While the issues at play are more complex than the journalistic treatment of this sukuk makes them seem (they always are!), Parker does make some interesting points that sector watchers should have on their radars. Specifically, those of us who act as Shari`a advisors in the sector, sit on international Shari`ah Boards, etc need to constantly be on guard so as to safeguard our reputations against reputational attacks like the attacks that have been launched during this controversy. Another takeway: Because there is such a low level of familiarity with fiqh among non-specialists, journalists and even practitioners in the sector, it becomes possible/much easier for doubts to be raised (correctly or incorrectly) about the activity of Shari`a experts in the sector (Thanks to Sh Moustafa Kassam for this last point).

 

Check out the Al-Madinah Int'l University PhD in Islamic Banking and Finance. It appears to be an program that could be very attractive to aspiring Shari`ah advisors, particularly those who are have strong English-speaking backgrounds and have completed Masters' degrees (or have Masters' equivalent training) in Islamic studies at traditional seminaries (e.g. the Nizamiyya madaris in the South Asian subcontinent or diapsora) or in an Arabo-Islamic college or university. Thanks to  Sh Moustafa Kassem, our newest associate, for bringing this to our attention.

Ma sha'Allah. We are pleased to announce that Mufti Abdullah Nana has just joined Straightway Ethical as an Associate. He joins a growing and prestigious list of dynamic and energetic fuqaha' who have joined Straightway Ethical recently.

Our colleague Mufti Kaleem Hassan has a informative page in the Deloitte's Islamic Finance group.

[An interesting recent reuters article on the issue of so-called Shari`ah governance, an issue that has received significant attention, recently, in conferences and seminar within the sector.]

Controlling fatwa would harm Islamic finance By Jawad I Ali and Omar Salah

 

Recent developments in the Islamic finance market prompted the industry to rethink the role of Shariah scholars.

Most Islamic financial institutions appoint a supervisory board or committee of religious scholars who are tasked with reviewing their transactions in order to ensure that they comply with the principles of Islamic Shariah in their business and financial dealings.

A Shariah supervisory board or committee approves or rejects a transaction through the issuance of a fatwa (an opinion or proclamation about the Shariah compliance of such a transaction).

The question of the day in the Islamic finance industry is whether Shariah scholars should be subject to some sort of supervision themselves.
In our opinion, the answer to this question depends on what is meant by ‘supervision’.

Industry practitioners should oppose supervision if it means that Shariah scholars would have to adhere to strict criteria or methodology before issuing a fatwa. Such supervision would in our opinion curtail innovation and transform the industry, prematurely, to a commoditised industry, since Shariah scholars would in their attempt to check all the boxes and stay within the accepted norms, refrain from covering new ground and developing new structures that would allow new transactions and thus the development of the industry.

The industry should not lose sight of the fact that Shariah scholars are our current day mujtahid (jurist). Throughout the history of Islamic jurisprudence, the use of human reasoning (ra’y) has played an important part in the development of Islamic Shariah.

When issuing fatwa, Shariah scholars are practising ijtihad and they should enjoy complete freedom in their practice of ijtihad; their guidance and limitations should only come from the five sources of Islamic Shariah being: the Qur’an; Sunna (the practice and traditions of the Prophet Muhammad (peace be upon him); Qiyas (a comparison, used to make a judgement on issues which have no clear-cut ruling in the Qur’an or the Sunna, by consideration of similar issues which do have clear ruling); Ijtehad (the diligent judgement of the scholars through reasoning and logic); and Ijmaa (a consensus or agreement used for issues which require Ijtehad).

Therefore, in our opinion, Shariah scholars should not be restricted or limited in their practice of ijtihad by any regulator. Such regulation would neither benefit the Shariah -compliance of the industry nor its further development.

However, we would support supervision of Shariah scholars such as the new proposed rules of the Accounting and Auditing Organisation for Islamic Financial Institutions (AAOIFI) to reduce the risks of conflicts of interest or improper disclosure.

This type of supervision may lead to more transparency and benefit the authenticity and credibility of both the industry and the Shariah scholars. Organisations such as the AAOIFI should run training and continuing education programs for would-be Shariah scholars. Such programmes should aim to provide Shariah scholars with an understanding of various financial and business transactions and the legal framework in which such transactions are being consummated.
Most importantly, these training and continuing education courses should train Shariah scholars to be inquisitorial of the intention (niyya’) behind the transaction. - Reuters

The National has an interesting piece on theological and ethical perspective on the environment. Straightway's Associate, Sh Musa Furber, is quoted as well.

Below is part 1-4 of the Sharia`ah Scholars Roundtable discussion on the AAOIFI standards and other topics of note. Sh Taha Abdul-Basser introduces the panel, which was held at the UFANA Islamic Finance Conference on March 30-31, 2010. Speakers in the series (1-4) are Sh Taha Abdul-Basser, Shaykh Nizam Muhammad Salih Yaquby, Mufti Barakatulla (England), and Sh Dr Aznan Hasan (Malaysia).

Shaykh Hud Bradford is a rising expert in the halal/Shari`ah compliant financial sector. Check out his blog.