IFSB and SEC Nigeria successfully organised joint seminar on Islamic Capital Market

Kuala Lumpur, 29 June 2021 - The IFSB and the SEC Nigeria successfully conducted a joint seminar on themed “COVID-19: Investor Protection and Transparency in Islamic Capital Market”.

This seminar aimed to increase the awareness of the importance of investor protection and transparency in fostering investor confidence including and especially during the unfavourable financial market condition. It also provided a platform to discuss critical policy issues arising in the context of the current global financial environment. The seminar’ main objectives were to; address Islamic finance-specific issues in relation to investor protection and transparency in the ICM; discuss the best market practices for investor protection in the ICM and the elements of a robust investor protection framework; highlight best practices and guidelines on disclosure requirements for and transparency in the ICM products, specifically for ṣukūk and Islamic collective investment schemes (ICIS) and identify issues arising from the current global environment, and share policy actions taken by various regulators and policy makers to address emerging challenges and issues. 

The Secretary-General of IFSB, Dr. Bello Lawal Danbatta stated in his welcoming remarks “Over the years, the ICM sector has been the fastest growing segment in the IFSI, securing widespread popularity in non-Muslim majority jurisdictions as well. To be precise, the ICM sector recorded a growth of around 26.9 percent y-o-y while expanding its share in the total IFSI assets from 26.5 percent in 2019 to 30.7 percent in 2020. As the significance and penetration of the ICM sector is growing, the challenge is to develop a robust legal and regulatory framework in place to maintain the investors’ confidence for the sustainability and stability of the market”. He added “the IFSB is strongly committed to facilitating the development of ICM through publication of researches, development of international standards, and organizing awareness programmes for the benefit of Islamic finance regulators, supervisors, market players and other stakeholders. In this regard, IFSB has been issuing relevant standards to provide RSAs with benchmarks in formulating oversight policies for the ICM sector”