| ADVANCED ISLAMIC FINANCE
TRAINING COURSE
Course Description
This course covers Islamic finance from both a technical and Sharia’a
perspective, reviewing the risks applying and the controls operating within
Islamic finance. Aimed at new and existing risk management professionals
considering Sharia’a compliant finance, trade, investment and insurance,
this course considers the nature of the risks that are specific to this
industry, but also covers the legal aspects of Sharia’a which underpin
all Islamic contracts to enable personnel to discuss relevant issues with
key customers.
Learning Objective
- To equip delegates with a practical understanding of the risks inherent
within Islamic finance
- To provide delegates with a detailed understanding of Islamic products
and their use in a business context
- To provide delegates with the ability to discuss key Islamic products
with customers
Who Should Attend
The course is appropriate for customer facing banking professionals
seeking to advance their knowledge of Islamic finance.
Methodologies
Classroom lectures and interactive practical workshop sessions developed
to affirm the learning objectives. There will be an examination to test
delegates understanding of key lessons learnt during the training event.
Learning Prerequisites
Attendees at this event should have a introductory understanding of Islamic
finance, as provided for in the partner course “An Introduction
to Islamic Finance”
Course Content:
Session 1: The Customer and Islamic Finance
- What are the types of client that are approaching the bank for Islamic
finance products?
- What are the types of client for whom Islamic products are most relevant?
- How could these be identified?
- What do these clients need to know about the products?
- How should we document that the client understands of the products?
- Case Study: Develop an initial analysis of the Islamic finance products
most suitable for differing types of customer
Session 2: Islamic and Western Finance
- What are the key differences between Islamic Finance and Western Finance?
- What are the concerns of the customers likely to be?
- How should these be answered?
- What are the lessons from the credit crisis - are these positive
or negative for Islamic Fiance?
- What are the key risks of Islamic Finance of which the customers
should be aware?
- Case Study: Develop a list of customers key concerns, together with
the suggested answers to such key concerns
Session 3: The Islamic Law of Contracts
- Principles of Islamic business including the avoidance of riba and
gharar
- The concept of Wa’d (promise)
- The different types of contract
- The purchase and sale of currencies
- The use of commodities
- The nature of the control environment applying within the legal functions
of Islamic institutions
- Case Study: What are the key risks arising from the application of
Islamic law? How should these be explained in practice?
Session 4: Financial Techniques Applied by Islamic Banks
- How can banks make money from Islamic Finance?
- How are fees calculated within Islamic Finance?
- The risk and control of Islamic current accounts;
- The type of customers for whom the following major Islamic contract
types are appropriate:
- Mudaraba,
- Musharaka,
- Murabaha,
- Ijara,
- Salam,
- Istisn'a;
- The pricing and structural issues of these products
- The pricing and of letters of credit and guarantees in Islamic finance
contracts.
- Case Study: Taking a series of examples decide which instrument would
be most appropriate for the client and why
Session 5: Islamic Asset and Fund Management
- The purpose of investment in Islam
- The Investor’s objectives
- Capital preservation
- Maximising yields
- Balancing liquidity and profitability
- Moral behaviour and social objectives
- How to meet the customer’s expectations
- Prohibited industries and the problems of Groups
- The issues relating to replicating conventional deposit structures
using Murabaha and Mudaraba;
- Islamic mutual funds and the customer expectation
- The Islamic stock selection process and the role of the Sharia'a
Supervisory Board.
- Case Study: What are the key issues that arise in practice when selling
Islamic mutual funds. How do these differ from the traditional investment
market?
Session 6: Islamic Bond Market – Sukuk
- The nature of Sukuk compared with conventional bonds
- The risks and controls over the issuance of Sukuk bonds
- The different types of Sukuk
- How Sukuk issues are rated.
- How are Sukuk bonds valued?
- What are the issues in selling Sukuk bonds – are they suitable
for private customers?
- Case Study: What are the key issues that arise in practice in selling
Sukuk bonds? How do these differ from selling conventional bonds?
Session 7: Islamic Insurance – Takaful
- The nature and structure of Takaful compared with conventional insurance;
- The limitations on products within Islamic insurance
- How to remunerate the insurance operator
- The Sharia'a governance of Takaful undertakings.
- The risks and controls within Takaful firms
- Case Studies: What are the key issues encountered with customers when
introducing them to Takaful instruments? How will these be dealt with
in practice?
Session 8: The Customer View
- What information will you require to know to enable judgments to be
made regarding the suitability of Islamic products for their needs?
- What information will you need to retain?
- How will you document the customer’s understanding of the products?
- Considering the following products, for which customers would they
be unsuitable:
- Mudaraba,
- Musharaka,
- Murabaha,
- Ijara,
- Salam,
- Istisn'a
Mutual funds
- How often should a client review be conducted?
- Final lessons
Session 9: Examination
Session 10: Examination Debrief/Results
State of the art facilities
Delegates can study in our comfortable hi-tech learning environment in
London, near Liverpool Street Station.
Back to top |
Advanced
Course in Islamic Finance
Course Venue: London EC2
information@premiercs.co.uk
|
