Getting The Deal Through logo
Getting The Deal Through

    Expand All / Collapse All

  • 1.

    In general terms, what policy has your jurisdiction adopted towards Islamic finance? Are Islamic finance products regulated differently from conventional instruments? What has been the legislative approach?

  • 2.

    How well established is Islamic finance in your jurisdiction? Are Islamic windows permitted in your jurisdiction?

  • 3.

    What is the main legislation relevant to Islamic banking, capital markets and insurance?

  • 4.

    Which are the principal authorities charged with the oversight of banking, capital markets and insurance products?

  • 5.

    Identify any notable guidance, policy statements or regulations issued by the regulators or other authorities specifically relevant to Islamic finance.

  • 6.

    Is there a central authority responsible for ensuring that transactions or products are shariah-compliant? Are IFIs required to set up shariah supervisory boards? May third parties, related parties or fund sponsors provide supervisory board services or must the board be internal?

  • 7.

    Do members of an institution’s shariah supervisory board require regulatory approval? Are there any other requirements for supervisory board members?

  • 8.

    What are the requirements for Islamic banks to be authorised to carry out business in your jurisdiction?

  • 9.

    May foreign institutions offer Islamic banking and capital markets services in your jurisdiction? Under what conditions?

  • 10.

    What are the requirements for takaful and retakaful operators to gain admission to do business in your jurisdiction?

  • 11.

    How can foreign takaful operators become admitted? Can foreign takaful or retakaful operators carry out business in your jurisdiction as non-admitted insurers? Is fronting a possibility?

  • 12.

    Are there any specific disclosure or reporting requirements for takaful, sukuk and Islamic funds?

  • 13.

    What are the sanctions and remedies available when products have been falsely marketed as shariah-compliant?

  • 14.

    Which courts, tribunals or other bodies have jurisdiction to hear Islamic finance disputes?

  • 15.

    Mudarabah - profit sharing partnership separating responsibility for capital investment and management.

  • 16.

    Murabahah - cost plus profit agreement.

  • 17.

    Musharakah - profit sharing joint venture partnership agreement.

  • 18.

    Ijarah - lease to own agreement.

  • 19.

    Wadiah - safekeeping agreement.

  • 20.

    Sukuk - Islamic securities. Have sukuk or other Islamic securities been structured and issued in your jurisdiction to comply with Islamic principles, such as the prohibition of interest?

  • 21.

    What is the legal position of sukuk holders in an insolvency or a restructuring? Are sukuk instruments viewed as equity or debt instruments? Have there been any court decisions or legislation declaring whether sukuk holders are deemed to own the underlying assets?

  • 22.

    Takaful - Islamic insurance. Are there any conventional cooperative or mutual insurance vehicles that are, or could be adapted to be, shariah-compliant?

  • 23.

    Which lines of insurance are currently covered in the takaful market? Is takaful typically ceded to conventional reinsurers or is retakaful common in practice?

  • 24.

    What are the principal regulatory obstacles facing the Islamic finance industry in your jurisdiction?

  • 25.

    In what circumstances may shariah law become the governing law for a contract or a dispute? Have there been any recent notable cases on jurisdictional issues, the applicability of shariah or the conflict of shariah and local law relevant to the finance sector?

  • 26.

    Are there any special considerations for the takeover of an Islamic financial institution, outside the requirements of the general merger control regime?

  • 27.

    Are there any notable features of the Islamic finance regime and markets for Islamic finance products in your jurisdiction not covered above?

  • Updates and trends

View profile

Established in 1991 by Rahmat Soemadipradja and Hafzan Taher, Soemadipradja & Taher (S&T) is one of Indonesia’s leading law firms, a full-service commercial law firm that provides international standard legal services.

View more information about Soemadipradja & Taher


Jakarta
Wisma GKBI, Level 9
JL Jend Sudirman No 28
10210
Jakarta
Indonesia
T: +62 21 574 0088
F: +62 21 574 0068


Testimonials

Briefing Signup

Sent approximately once a month, the free GTDT Briefing service alerts you of the latest titles to be published on GTDT Online.

Sign up to be notified of new content

Subscribe



Follow Getting the Deal Through for the latest updates on law and regulation worldwide

Follow us on LinkedIn