The Securities and Exchange Commission has uncovered new guidelines on Shariah Advisory Services for non-premium capital market items and administrations.

As per the SEC, Shariah administration is urgent thinking about that consistence with Shariah rules and standards is significant in Non-premium Capital Market tasks/exchanges.

What the SEC is saying
The Commission noted that the provision of the rules is in line with local and international best practices. The regulatory organization in the Nigerian Financial System such as CBN, and NAICOM had issued such guidelines to provide clear and good Shariah governance in their respective sectors.
“Making the Shariah Advisory service a registrable function in the market will assist in effective implementation of the proposed consolidation of the Shariah governance rules and will also be an additional source of revenue to the Commission,” the Commission stated.
The Commission stated that the Non-interest Capital Market activities in recent times are exponentially increasing as the market is witnessing the entrance of more asset managers, the emergence of i-REIT, listing of sovereign Sukuk on the Exchanges, issuance of corporate Sukuk, emergence of shariah advisory function, etc.
“These developments coupled with the necessity of shariah services for the market affirms the critical need for a framework/guideline to set a minimum standard for persons (corporate or individual) seeking to provide shariah advisory services for Non-Interest Capital Market activities.
“The guideline is essential for the development of this nascent sector, as it will promote transparency and confidence, whilst creating a level playing field for all participants in the market”.
Further to the above, the Commission stated that a review exercise on its existing Rules on shariah governance undertaken by the Standing Committee of Deepening Non-interest Capital Market led to the recommendation that rules be drafted to provide for the registration and regulation of shariah advisory services in line with international best practices. Hence, the proposed Rules for Shariah Advisory Services for Non-Interest Capital Market Products and Services.
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