Disclosures to Promote Transparency and Market - IFSB

TABLE OF CONTENTS
ACRONYMS .................................................................................................................................. v
SECTION 1: GENERAL CONSIDERATIONS............................................................................... 1
1. Purpose and Objectives............................................................................................ 1
2. Scope of Application ................................................................................................. 2
3. Achieving Appropriate Disclosure Levels ................................................................. 2
4. Key Considerations for an Effective Disclosure Regime .......................................... 3
SECTION 2: FINANCIAL AND RISK DISCLOSURE PRINCIPLES............................................. 5
1. General Disclosure Principles................................................................................... 5
2. Scope of Inclusion: Corporate Information ............................................................... 6
Table 1: Scope of Inclusion: Corporate Information ................................................. 6
3. Capital Structure, including Equity of Unrestricted IAH ............................................ 7
Table 2: Capital Structure ......................................................................................... 7
4. Capital Adequacy...................................................................................................... 8
Table 3: Capital Adequacy........................................................................................ 9
SECTION 3: DISCLOSURES FOR IAH ...................................................................................... 10
Table 4: Investment Accounts (both Unrestricted and Restricted IAH).................. 11
Table 5:Unrestricted Investment Accounts............................................................. 12
Table 6: Restricted Investment Accounts ............................................................... 13
SECTION 4: RETAIL INVESTOR-ORIENTED DISCLOSURES FOR IAH ................................ 14
SECTION 5: RISK MANAGEMENT, RISK EXPOSURES AND RISK MITIGATION................. 16
1. General Disclosures: Risk Exposures and Assessment ........................................ 16
Table 7: General Disclosures ................................................................................. 17
Table 8: Credit Risk ................................................................................................ 18
Table 10: Liquidity Risk........................................................................................... 20
Table 11: Market Risk............................................................................................. 21
Table 12: Operational Risk ..................................................................................... 22
Table 13: Rate of Return Risk ................................................................................ 23
2. Displaced Commercial Risk.................................................................................... 23
Table 14: Displaced Commercial Risk.................................................................... 25
3. Contract-specific Risks ........................................................................................... 26
Table 15: Contract-specific Risks ........................................................................... 26
SECTION 6: GENERAL GOVERNANCE AND SHARĪ`AH GOVERNANCE DISCLOSURES.. 27
Table 16: General Governance Disclosures........................................................... 28
Table 17: Sharī`ah Governance Disclosures.......................................................... 28
SECTION 7: TREATMENT OF ISLAMIC WINDOWS ................................................................ 29
Appendix A 30
1. Necessary Conditions for an Effective Transparency and Disclosure Regime for IIFS
30
2. Potential Limitations of a Public Disclosure Regime .............................................. 33
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