TERMS OF REFERENCE FOR SHARIAH ADVISORY COMMITTEE MEMBERS

Post: Members of Shariah Advisory Committee

No of Vacancy: 03                   

Post Type: Independent

Duration: Two Years

Reporting to: Board of Directors   

Introduction

SME Development Finance Corporation (Pvt Ltd) is a specialized financial institution providing assistance and support in the development of SMEs and entrepreneurial start-ups with the primary purpose of easing access to finance. In its effort to provide inclusive financial solutions in the Maldives, SDFC has launched its Islamic window to provide Shariah-compliant financial solutions to the SME sector.

Background

Shariah Committee is an independent body of specialists who are well versed in Islamic commercial transactions (Islamic Jurisprudence). The Shariah Committee of SDFC Islamic is entrusted with the duty of directing, reviewing, and supervising the activities and business affairs of the SDFC Islamic to ensure that they are in compliance with Islamic Shari’ah rules and principles and established guidelines.

Scope of Shariah Committee

The Shariah Committee of SDFC is expected to:

• Oversee the Shariah compliance business activities and affairs of SDFC to ensure their compliance at all times.
• Advise the Board and the Management of SDCF on Shariah matters in order for the SDFC Islamic to comply with Shariah principles at all times.
• Review, examine, validate, and endorse all the Shariah policies and procedures.
• Endorse product structures, processes and workflows, and SOPs.
• Endorse all the legal documents, materials, manuals, and guidelines.
• Assess and oversee the work carried out by the Shariah review and Shariah audit function in order to ensure compliance with Shariah matters.
• Provide assistance to related parties, such as SDFC’s legal counsel, auditor, or consultants who may seek advice on relevant Shariah matters.
• Provide written Sharīah opinions wherever necessary.
• Advice on required preventive, remedial, and corrective measures in circumstances where Shari’ah non-compliance issues are reported.
• Provide guidance on day-to-day and routine Shariah related issues, post product approval and Shari’ah training.
• Respond to Shari’ah-related queries, conduct Shariah review and submit a quarterly report to Shari’ah Board.

Nomination criteria

Criteria for the names nominated as Shariah Committee members.

1. Shall be a natural person.  A company, institution, or an independent body cannot be considered a Shariah committee member.
2. Must be a practicing Muslim.
3. Must be mature and sane and must have reached intellectual maturity.
4. Shall have an acceptable reputation, character, and integrity.
5. Must not have been convicted of theft, misappropriation, extortion, fraud, criminal breach of trust, corruption, or negligence.
6. Shall possess a formal qualification or a bachelor’s degree/ijazah from a recognized university in the sciences of Sharī‘ah including Islamic transaction/commercial law (Fiqh al’Muamalat), and be able to demonstrate an adequate understanding of finance in general and Islamic finance in particular or,
7. Must be individuals generally recognized for their expertise in their respective field (e.g. economics, law, banking, accounting, finance, etc.) and possess empirical knowledge and Islamic finance related expertise or experience.
8. Nominees shall be fit and proper as per the Prudential Regulation No: 9‐2009.
9. Shall not be Shariah committee members of other financial institutions within the same category.

Structure

Shariah Committee is an independent group of members appointed by the Board of Directors of SDFC and shall be reporting directly to the Board. Shariah committee members shall carry out the oversight function of the internal Shariah department and business activities and affairs of SDFC Islamic in matters related to Shariah. 

Shariah committee of SDFC Islamic shall consist of a minimum of 3 members, among whom a chairperson for the committee will be appointed. The committee composition shall be diverse in areas of Sharia, Islamic Jurisprudence (Principles of Islamic Jurisprudence and Islamic Commercial Law), and/or Islamic Finance and Economics.

Meetings and Quorum

Sharia Committee members shall conduct a minimum of one meeting in each quarter. However, SDFC Islamic may call for extraordinary Committee meetings if the need arises. The meetings will generally be held at the SDFC head office located in Male’ City, Republic of Maldives. The meeting shall be conducted via other means If required.

The quorum for every meeting, whether conducted quarterly Shariah Committee Meetings or extraordinary Committee Meetings, two-thirds (2/3) with the majority of attending Members must be observed.

Remuneration

Committee members shall be remunerated as per the remuneration policy of SDFC.

How to Apply:

Prospective members shall forward their CVs and supporting documents to SDFC by 8^th May 2022, 12:00 hours. The documents must be forwarded through the link provided below. 

https://sdfcmv.aidaform.com/application-form-members-shariah-advisory-committee