IFIA Professional Code of Conduct

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Introduction

The purpose of this code of conduct seeks to avoid the possibility that the actions of one member may being disrepute to the Islamic Finance sector and adversely impact the reputation of the association and its members. Risks such as this and other risks will be logged in the Association’s Risk Register and reviewed by the board in every meeting.

This Code of Conduct (“this code”) applies to members of this code is effective from October 2023.

The Islamic Finance & Investment Association (IFIA) will arrange for a review of this Code at least every 3 years or sooner if instructed by a favourable resolution from members.

Key initiatives of this Code

Members involved in Islamic Banking, Finance & Investments activities must:
  • Be a Fit and Proper person;
  • Comply with all relevant state and federal laws;
  • comply with recognised local or/and international Shariah boards;
  • comply with a recognised international Shariah compliant standards
  • maintain appropriate education and training standards;
  • be covered by adequate professional indemnity insurance;
  • maintain transparency of product and services to consumers;
  • provide offer documents such as Product Disclosure Statements and Target Market Determination (TMD) to retail consumers and information memorandum to wholesale investors;
  • act promptly and properly in relation to management and operational activities;

Our standards affirm our members professional conduct;  

  1. Members must be aware of this Code.
  2. Members must always comply with this Code.
  3. Members must not engage in Misconduct.
  4. Members must be, and continue to be, of good character and repute and a Fit and Proper person.
  5. Members must keep up to date with and comply with all relevant laws, regulations and Conducts relevant to the conduct of their business.
  6. If the requirements of any law or regulation impose a higher standard than specified in this Code, then such higher standard will prevail
  7. If any provision of this Code conflicts with any law or regulation, that provision will not operate, however the balance of the Code will apply.
  8. Members are encouraged to maintain relevant education and training program for both regulatory and Shariah
  9. Members, in particular corporate members are encouraged to employ or otherwise engage only with representatives who have any relevant the relevant skills to operate under a licence or authorisation, and who have the qualifications and experience necessary to deal competently and professionally with Customers.
  10. Members must always conduct their business in a way which does not contravene the Constitution of the IFIA, this Code of Conduct and all relevant laws.
  11. Members are liable for any acts or omissions of any employee or representative that are within the scope of the employee’s or representative’s ostensible authority.
  12. Members must:
    • meet all membership requirements and accept the boards decision as final in any matter
    • upon applying to subscribe, upload relevant documentation such as a copy of business registration, Australian Financial Services License, Australian Credit License, Corporate Authorised Representative together with relevant Shariah certification as in the case of Corporate members
    • act with appropriate skill, care and diligence;
    • deal with all persons with whom they may come into contact in the course of their business activities in good faith;
    • create and maintain appropriate records;
    • not engage in any acts or omissions likely to be of a misleading or deceptive nature;
    • not engage in any acts or omissions of a dishonest or fraudulent nature;
    • ensure that their advertising is not false, misleading, deceptive, dishonest or likely to mislead or deceive;
    • not engage in unconscionable conduct;
    • fully disclose to any Customer or potential Customer any actual, apparent or potential conflict of interest of which a Member is or ought to be aware to the extent that such a conflict of interest may reasonably concern a Customer;
    • refrain from any conduct which may embarrass, impugn, or discredit the IFIA or bring the IFIA into disrepute; and
    • adhere to the reasonable instructions of IFIA Board

Primary objectives of the Code

A primary objective of this Code is to encourage the adoption of Industry standards and compliance with Islamic Financial laws and regulations. 

This Code has been voluntarily developed by the IFIA business leaders to assist in supporting the IFIA membership to:

  1. advocacy for Islamic Financial Services in particular with government and financial services
  2. promote high Industry standards of service to customers;
  3. promote compliance of shariah compliant standards; and
  4. promote a high public standing of IFIA membership to the industry.

 

Application of Code

This Code of Conduct applies to and is binding on Members who are industry practitioners and issuers within the Islamic Finance Services Industry. 

The Board may from time to time: 

(a)       amend this Code;

(b)       prescribe those parts or all of this Code applies to one or more classes of Member.

Legal status of Code

This Code operates alongside and is subject to existing laws and regulations and does not limit your rights under such laws and regulations. Where there is any conflict or inconsistency between this Code and any law or regulation, that law or regulation prevails.

Competent Staff, Agents and Representatives

  1. We will make sure that our staff, agents and representatives are well trained so that they can competently do their work and understand this Code and how to comply with it.
  2. We will regularly review the effectiveness of our training programs for staff, agents and representatives.

 

Code revision and amendments 

IFIA Board may, after consultation with, and seeking comments and suggestions from:

(a)        the then IFIA members

(b)        such other organisations or people as it considers appropriate; review and amend the Code at any time it considers it appropriate to do so.

Information Security and Privacy

a. We will comply with the Privacy Act 1988, including the Australian Privacy Principles and the Privacy (Credit Reporting) Code 2014 the collection, storage, use and disclosure of your personal information.

b. We will treat your personal with respect and in accordance with our Privacy Policy. We will not disclose that information to any other organisation unless:

  1. we are required to by law (for example, under the Anti-Money Laundering and Counter- Terrorism Act 2006);
  2. there is a duty to the public to disclose the information;
  3. you ask us to disclose the information;
  4. you have consented to us doing so; or
  5. we are otherwise not restricted from doing so under applicable laws.

c. We will take reasonable steps to protect your personal from misuse or loss, and from unauthorised access, modification or disclosure. We will regularly review the security and reliability of our services.

d. We will have a Privacy Policy and will publish it on our website.

Knowledge sharing documents, statements, and other information. 

a. Information shared through IFIA will treated as confidential unless;

  1. Written authority from the author has been given to distribute to members;
  2. Approval received from the Board to provide to internal stakeholders;
  3. Request from external authorities received and vetted by the board;

b. Requests for information will be actioned within 3 Business Days of your request.

c. If, for some reason, we are unable to provide a document within these timeframes, we will advise you of this, together with the expected timeframe for providing the document.

d. Documents may be provided in electronic form, including in the form of a computer-generated record, or in any other form as mutually agreed.

Electronic Communication

a. When the law allows us to do so, we may communicate with you electronically rather than in paper form.

b. We may do this:

  1. by sending the information using a form of electronic communication; or
  2. where it is reasonable for us to do so, by notifying you that we have made the information available electronically (for example, on a website) and how you may retrieve the information.
  3. You must notify us of any change to your electronic contact information.

c. Member Fees and Charges

  1. Fees are structures are agreed yearly at AGM and at special member resolution meeting when required; 
  2. We will regularly review the effectiveness of our disclosure of fees and charges to you.

d. Money held in Association

Primary objectives of the Code

A primary objective of this Code is to encourage the adoption of Industry standards and compliance with Islamic Financial laws and regulations. 

This Code has been voluntarily developed by the IFIA business leaders to assist in supporting the IFIA membership to:

  1. advocacy for Islamic Financial Services in particular with government and financial services
  2. promote high Industry standards of service to customers;
  3. promote compliance of shariah compliant standards; and
  4. promote a high public standing of IFIA membership to the industry.

 

Application of Code

This Code of Conduct applies to and is binding on Members who are industry practitioners and issuers within the Islamic Finance Services Industry. 

The Board may from time to time: 

(a)    amend this Code;

(b)    prescribe those parts or all of this Code applies to one or more classes of Member.

Legal status of Code

This Code operates alongside and is subject to existing laws and regulations and does not limit your rights under such laws and regulations. Where there is any conflict or inconsistency between this Code and any law or regulation, that law or regulation prevails.

Corporate members – Competent Staff, Agents and Representatives

  1. Corporate members will make sure their staff, agents and representatives are well trained so that they can competently do their work and will be trained to understand this Code and how to comply with it.
  2. Corporate members will regularly review the effectiveness of their training programs for staff, agents and representatives.

Code revision and amendments 

IFIA Board may, after consultation with, and seeking comments and suggestions from:

(a) IFIA members or;

(b) such other organisations or people as it considers appropriate; review and amend the Code at any time it considers it appropriate to do so.

Information Security and Privacy

a. IFIA and all its corporate members will comply with the Privacy Act 1988, including the Australian Privacy Principles and the Privacy (Credit Reporting) Code 2014 the collection, storage, use and disclosure of your personal information.

b. IFIA and all its corporate members will treat your personal with respect and in accordance with our Privacy Policy. We will not disclose that information to any other organisation unless:

  1. we are required to by law (for example, under the Anti-Money Laundering and Counter- Terrorism Act 2006);
  2. there is a duty to the public to disclose the information; (c)       you ask us to disclose the information;
  3. you have consented to us doing so; or
  4. we are otherwise not restricted from doing so under applicable laws.

c. We will take reasonable steps to protect your personal from misuse or loss, and from unauthorised access, modification or disclosure. We will regularly review the security and reliability of our services.

d. We will have a Privacy Policy and will publish it on our website.

Knowledge sharing documents, statements, and other information. 

a. Information shared through IFIA will treated as confidential unless;

  1. Written authority from the author has been given to distribute to members;
  2. Approval received from the Board to provide to internal stakeholders;
  3. Request from external authorities received and vetted by the board;

b. Requests for information will be actioned within 3 Business Days of your request.

c. If, for some reason, we are unable to provide a document within these timeframes, we will advise you of this, together with the expected timeframe for providing the document.

d. Documents may be provided in electronic form, including in the form of a computer-generated record, or in any other form as mutually agreed.

For the purposes of website advertising and marketing material, corporate members give their approval to post their logos as required to promote the unity of the industry.

Electronic Communication

a. When the law allows us to do so, we may communicate with you electronically rather than in paper form.

b. We may do this:

  1. by sending the information using a form of electronic communication; or
  2. where it is reasonable for us to do so, by notifying you that we have made the information available electronically (for example, on a website) and how you may retrieve the information.
  3. You must notify us of any change to your electronic contact information.

c. Membership Fees

  1. Membership Fees are structured are agreed initially in the constitution and then yearly at Annual General Meetings (AGM) or via a special member resolution meeting when required; 
  2. We will regularly review the effectiveness of our disclosure of membership fees and charges to you.

d. Money held in Association

  1. Monies held in the association from membership fees less any outgoing for managing the association such as license fees, marketing, advertising and consulting fees will be recorded and reported by independently assigned accounting professional.
  2. Financial reporting will be made available to all members where their membership fees are up to date.
In this Code of Conduct, the following words and phrases have the meanings and references set out below:
ASIC the Australian Securities and Investments Commission
Board the board of directors of the IFIA from time to time
Customer or client a natural person (i.e. an individual) or a small business, that is, a business that has employees or representatives, who engages a Member to provide services relating to the provision to Islamic Investment and Finance
Disciplinary Rules the IFIA Disciplinary Rules given effect by the IFIA Constitution and in a form approved by the Board from time to time
Fit and Proper a person considered by the Board, and the IFIA to be fit and proper having regard to the criteria specified below and any relevant law or ASIC guidance and taking into account the activities the person has undertaken, or proposes to undertake. The criteria are:
  • whether a person has appropriate knowledge, skills, experience, competence, judgment, character, honesty and integrity;
  • been subject to criticism, discipline, sanction, disqualification or removal by a professional or regulatory body, court or tribunal;
  • been banned or had a licence or authorisation revoked by a regulatory body in a related sphere, including in financial  services;
  • been subject to adverse findings in criminal or civil proceedings;
  • been refused a licence or registration for a commercial or professional activity;
  • failed to manage personal debts satisfactorily;
  • been a responsible officer in an entity at a time the entity failed;
  • been inappropriately critical of a relevant self- regulatory body;
  • demonstrated a lack of willingness to comply with regulatory or professional requirements;
  • been involved in business activities that are considered negligent, deceitful or otherwise improper;
  • been or is considered of bad repute, or
  • surrendered, lost or failed to maintain an essential qualification or an authorisation to act or requirement to be admitted to membership or to remain a Member of the IFIA, or such qualification or authorisation or requirement has been terminated, suspended or cancelled, whether this qualification, authorisation or requirement arises under the Constitution, the Disciplinary Rules or another requirement of the IFIA ,or under law.
IFIA Islamic Finance & Investments Association Limited ABN 63 668 265 914 “the Company”
Member a person that is a Member of the IFIA as defined in the   Constitution of the IFIA
Membership Officer Membership Officer as defined in the Constitution of the IFIA
Misconduct a breach of this Code of Conduct or conduct involving any one or more of:
  • a breach of any relevant legislation or regulation; or
  • an act of fraud or dishonesty; or
  • activities that are likely to be misleading or deceptive; or
  • knowingly making a false statement; or
  • gross negligence;
  • failure of appropriate skill, care and diligence; or
  • a refusal to, or neglecting or failure to, comply with a provision of the IFIA Constitution, the IFIA Code of Conduct, regulatory rules,
  • a refusal to, or neglecting, or failure to, comply with an obligation placed on Members by the Board;
  • misrepresentation or omission of material facts in relation to an application for Membership of the IFIA;
  • misrepresentation or omission of material facts in relation to mentoring of a Member; or
  • misrepresentation of material facts, making a false statement or being grossly negligent concerning continuing professional development hours earned or to be earned as a Member; or
  • activity that involves pending or actual serious criminal or serous civil charges; or
  • a breach of any legislation, regulation or other legal requirement relating to the Member’s business activities including without limitation conduct which may, in the Board’s view, bring the IFIA or the industry into disrepute, failing or refusing to provide information or knowingly refusing to co-operate with the IFIA.
Shariah Compliant Islamic canonical law based on the teachings of the Quran and the traditions of the Prophet PBUH (Hadith and Sunnah), prescribing both religious and secular duties and penalties for lawbreaking.
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