Regulatory Alerts2022-06-22
Instructions for Shariah Governance in Capital Market Institutions
The Capital Market Authority of Saudi Arabia issued these Instructions to establish comprehensive rules and standards for Shariah governance across capital market institutions offering compliant products or services. The document mandates that boards of directors and executive management develop, approve, and supervise Shariah compliance policies and governance frameworks while ensuring the independence, remuneration, and annual reporting of dedicated Shariah committees. It further outlines strict requirements for committee formation, internal Shariah audits, confidentiality, and the end-to-end development process of Shariah-compliant financial products to ensure ongoing regulatory alignment.
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