CERTIFICATE IN COMPARATIVE
CAPITAL MARKETS:
ISLAMIC AND CONVENTIONAL PERSPECTIVES
18–22 June 2007
The Ritz-Carlton, Kuala Lumpur
Introducing a New Comparative
Capital Markets Programme
for South East Asia
Capital markets are changing rapidly, and professionals who work in these markets need a sound
understanding of market structures, instruments and a firm knowledge in regulation and compliance
issues. At the same time, there has been a growing global demand for financial instruments that adhere
to Islamic principles.
This demand, together with the excess liquidity arising from the high price of oil, has created a fast
expanding Islamic capital market operating in parallel to the conventional capital markets in Europe
and the US. The pace of development in the Islamic financial market has gathered momentum with
the formation of various international Islamic institutions
to study and promote this market. These institutions
include the Islamic Financial Services Board (IFSB),
the International Islamic Financial Market (IIFM) and
the Accounting and Auditing Organisation for Islamic
Financial Institutions (AAOIFI).
Today, the Islamic financial market runs parallel to the
conventional financial market and provides investors with
an alternative investment philosophy that is rapidly gaining
acceptance. Educated professionals with a shared base
of knowledge in both markets are critical to the operation
of both the local and global economic and financial systems – such individuals may work as brokers or
professional traders, or they may be employed in the banking or insurance industries, or as compliance
professionals within financial firms. Additionally, investors themselves and managers within securities
firms need a clear understanding of the processes that drive modern investment activities. There is also
a clear need in all developed countries for regulators and central bankers to be fully conversant in the
activities and practices of the firms and banks they oversee.
For these reasons, the International Centre for Education in Islamic Finance (INCEIF), NASD and
the International Capital Market Association (ICMA) Centre of the University of Reading have teamed
up to deliver this new certificate programme. This five-day programme will expose participants to
both the fundamental principles of conventional and Islamic capital markets, including current issues
in market regulation, investor protection, market abuse and major regulatory challenges for financial
intermediaries.
NASD and the University of Reading experts will focus on international capital market standards and
best practices, while INCEIF will deliver and participate in Islamic segments of the programme to address
local and regional issues. This approach will ensure that participants attain both knowledge in Islamic
and conventional capital markets, regulation and compliance, and will allow an informed debate on
developments in the global capital markets.
INCEIF, NASD, and the University of Reading envisage offering similar programmes in other financial
centres.
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Programme Overview
The Comparative Capital Markets Programme provides a survey of capital market issues – how capital
markets function, products sold and terminology used, the importance of regulation and investor protection.
The programme uses a variety of teaching methods, including lectures, panel discussions, case studies
and interactive sessions between participants to quickly grasp and internalise new knowledge.
The programme coursework will provide participants with:
• • core capital market kowledge;
• • product specific expertise; and
• • understanding of the regulatory environment.
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Who should attend
The programme is ideal for all capital market participants who seek a solid
understanding of financial market concepts, the growing significance of
regulation and the need for compliance including:
• capital market professionals (including brokers, dealers, investment
banking and insurance professionals and professional traders);
• regulators and compliance professionals;
• legal, audit, risk, operations, and IT specialists; and
• investors and others seeking a sound understanding of financial
markets.
Expected Outcomes
After the five-day programme, participants will have an in-depth understanding of:
• the shariah principles underlying Islamic finance, specifically in the Islamic capital market;
• the broad and specific framework of structuring Islamic capital market products; and
• the fundamental difference between conventional and Islamic financial practices in the capital
market industry.
Programme Details
Date:
18–22 June, 2007
Venue:
The Ritz-Carlton, Kuala Lumpur
Programme Materials: All programme materials will be distributed throughout the sessions.
Faculty:
The programme will be taught by professionals from INCEIF, NASD, University of
Reading and industry experts.
Certification:
Participants who successfully complete this programme and pass the assessment exercise will receive a Certificate in Comparative Capital Markets, jointly
awarded by INCEIF, NASD and University of Reading. Those who prefer not to
be assessed instead will receive a Certificate of Attendance.
CPD/CPE:
The participants with full attendance will be awarded 10 CPE points by the
Malaysian Securities Industry Development Centre (SIDC).
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Course Outline
DAY ONE – 18 JUNE
0800 – 0845
Registration
0845 – 1000
OFFICIAL OPENING
• Welcoming Address by Prof. Dr. Malik Muhammad Mahmud Al-Awan, INCEIF
• Opening Remarks by Deputy Governor, Bank Negara Malaysia
• Programme Introduction by Prof. Dr. Malik Muhammad Mahmud Al-Awan, INCEIF
and Prof. John Board, University of Reading
1000 – 1100
Refreshment & Networking Break
1100 – 1230
Introduction to Capital Market: Regulatory Framework
• Development of Islamic Capital Market
• International Approaches (European, American and Middle Eastern)
• South East Asia Perspective
• Roles played by Islamic Capital Market
Speakers: Representative from Securities Commission, Malaysia
John Hennessy, NASD International
1230 – 1400
Lunch
1400 – 1530
Comparative Views on Capital Market
• Sources of Shariah
• Contracts Commonly Employed in Islamic Capital Market Products
• Roles of Shariah Advisors
Speakers: Prof. Dr. Zainal Azam Abd. Rahman, INCEIF
Prof. John Board, University of Reading
1530 – 1545
Afternoon Tea Break
1545 – 1700
Stock Screening Process
• Stock Screening Process
• Shariah-Compliant Review
• Shariah Guidance
Speakers: Prof. Datuk Dr. Syed Othman Alhabshi, INCEIF
John Hennessy, NASD International
1700
End of Day One
DAY TWO – 19 JUNE
0900 – 1015
Islamic Securities Market in Malaysia
• What are Islamic Securities?
• Differences between Conventional and Islamic Securities
• Types of Islamic Securities
• Islamic Fixed Income Securities
• Sukuk Ijarah, Musharakah and Mudharabah
• Islamic Asset-backed Securities
Speaker: Wan Abdul Rahim Wan Kamil, First International Consulting Group
1015 – 1030
Morning Tea Break
1030 – 1145
Islamic and Conventional Unit Trusts
Speakers: Prof. Datuk Dr. Syed Othman Alhabshi, INCEIF
Prof. Charles W.R. Ward, University of Reading
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DAY TWO (continued...)
1145 – 1245
Comparative Analyses of Islamic and Conventional REITs
Speakers: Prof. Dr. Saiful Azhar Rosly, INCEIF
Prof. Charles W.R. Ward, University of Reading
1245 – 1400
Lunch
1400 – 1515
Presentation of Special Paper
• Differences in Shariah Opinions: Are they obstacles or opportunities?
• Case Study: Emerging Islamic Capital Markets in the Middle East: the Case of
Dubai International Financial Exchange (DIFX)
Speaker: Dr. Hatim El-Tahir, Dubai International Financial Exchange
1515 – 1530
Afternoon Tea Break
1530 – 1700
Risk Management
• Types of Risk: Credit Risk, Market Risk, Capital and Liquidity Risks
• Overview of Risk Management and the Need for Internal Controls
• Risk Management Tools: Value at Risk (VaR) and its Alternatives
Speakers: Prof. Dr. Hamzah Ismail, INCEIF
Prof. John Board, University of Reading
1700
End of Day Two
DAY THREE – 20 JUNE
0900 – 1030
Regulation
• Goals, Uses and Limitations
• Critical Regulation and Compliance Issues in Retail Markets
• Regulation and Cross-Border Transactions
Speakers: John Hennessy, NASD International
Prof. Dr. Syed Abdul Hamid AlJunid, INCEIF
1030 – 1100
Morning Tea Break
1100 – 1230
Issues in Market Regulation
• Trade Transparency: The Need to Protect Investors
• Market Fragmentation and Consolidation
Speakers: Prof. John Board, University of Reading
Prof. Dr. Zainal Azam Abd. Rahman, INCEIF
1230 – 1400
Lunch
1400 – 1530
Investor Protection and Market Abuse
• Investor Protection Case Study
Speaker: John Hennessy, NASD International
1530 – 1545
Afternoon Tea Break
1545 – 1700
Major Compliance Issues and Challenges
• Client Acceptance and Money Laundering
• Conduct of Business, Sales Practices and Customer Complaints
• Insider Trading and Market Abuse, Brokerage Operations
Speakers: John Hennessy, NASD International
Dr. Hatim El-Tahir, Dubai International Financial Exchange
1700
End of Day Three
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DAY FOUR – 21 June
0900 – 1030
Managing Ethics in Brokerage Firms
Speakers: Prof. Dr. Syed Abdul Hamid AlJunid, INCEIF
John Hennessy, NASD International
1030 – 1045
Morning Tea
1045 – 1230
Case Study: Sukuk – Present and Future Prospects
Speaker: Rafe Haneef, Citigroup Asia
1230 – 1400
Lunch
1400 – 1500
Case Study: The Importance of Islamic Debt Securities and with Special Reference to First
Global Sukuk
Speaker: Shamsun A. Hussain, CIMB Islamic Bank
1500 – 1515
Afternoon Tea
1515 – 1700
Comparative Views on Derivatives
Speakers: Dr. Aznan Hasan, International Islamic University Malaysia
Mustafa Omar Mohammed, International Islamic University Malaysia
Prof. John Board, University of Reading
1700
End of Day Four
DAY FIVE – 22 June
0900 – 1100
Programme Evaluation and Assessment
1100 – 1130
Morning Tea
1130 – 1230
Panel Discussion
• Issues on Shariah Compliance
• Issues on Regulatory Compliance
Moderator: Prof. Dr. Malik Muhammad Mahmud Al-Awan, INCEIF
Panelists: Dr. Hatim El-Tahir, Dubai International Financial Exchange
John Hennessy, NASD International
1230 – 1500
Lunch
1500 – 1630
Panel Discussion
• Challenges and Prospect of Capital Markets
Moderator: Prof. Dr. Zainal Azam Abd. Rahman, INCEIF
Panelists: Prof. Datuk Dr. Kamaruddin Sharif, INCEIF
Baljeet Kaur, Kuwait Finance House
Mustapha Hamat, Institute of Islamic Banking & Finance
1630
Closing Remarks
Presentation of Certificates
End of Programme
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Programme Faculty
PROF. JOHN BOARD
Director of the ICMA Centre
University of Reading
JOHN HENNESSY
Senior Director of Education and Training
NASD International
PROF. DR. MALIK MUHAMMAD MAHMUD
AL-AWAN
Chief Academic Officer and Dean of the Faculty,
Distinguished Professor of Islamic Finance
INCEIF
PROF. DATUK DR. SYED OTHMAN
ALHABSHI
Professor of Islamic Economics and Econometrics
Head of Takaful Department
INCEIF
PROF. CHARLES W.R. WARD
PROF. DR. SAIFUL AZHAR ROSLY
Emeritus Professor of Property
Professor of Islamic Economics and Banking
Head of Islamic Banking Department
Investment and Finance
University of Reading
DR. HATIM EL-TAHIR
PROF. DR. SYED ABDUL HAMID ALJUNID
Training Manager
DIFX Academy
Professor of Applied Finance
Head of Islamic Financial Markets Department
Dubai International Financial Exchange
INCEIF
BALJEET KAUR GREWAL
Director and Chief Economist
Kuwait Finance House
SHAMSUN ANWAR HUSSAIN
Director
CIMB Islamic Bank
WAN ABDUL RAHIM KAMIL
Director
First International Consulting Group
MUSTAPHA HAMAT
Fellow
Institute of Islamic Banking & Finance
(IIiBF)
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INCEIF
PROF. DR. ZAINAL AZAM ABD. RAHMAN
Professor of Islamic Law
Head of Shariah Department
INCEIF
PROF. DR. HAMZAH ISMAIL
Professor of Islamic Business Management
Head of the Ph.D. Programmes
INCEIF
PROF. DATUK DR. KAMARUDDIN SHARIF
Professor of Takaful
Head of Masters Programme
INCEIF
RAFE HANEEF
Head of Islamic Banking
Citigroup Asia
DR. AZNAN HASAN
MUSTAFA OMAR MOHAMMED
Assistant Professor, Kulliyyah of Laws,
Lecturer, Kulliyyah of Economics
International Islamic University Malaysia
International Islamic University Malaysia
General Information
Prerequisites
All participants should have competence in English and a working knowledge of financial markets, although no
formal training in finance is required.
Programme Sessions
The programme will run from 9 am – 5 pm on five consecutive days.
Due to the intensive nature of the programme, we do not recommend
selective attendance. Appropriate breaks will be scheduled throughout
each day.
Location
The programme will be held at The Ritz-Carlton, Kuala Lumpur.
Fees
The cost of the programme is RM7,000. The expenses incurred on travel and accommodation are to be borne by
the participants.
Discounts are available for organisations that register multiple participants for the programme. Registrations of 3
or more participants from one organisation, will be entitled to a 10% discount.
Registration and Payment
Please send the completed form along with payment to the following address:
INCEIF
2nd Floor, Annexe Block
Menara Tun Razak
Jalan Raja Laut
50350 Kuala Lumpur
MALAYSIA
Payments should be made payable to INCEIF. The brochure and the form can also be downloaded from our
website at www.inceif.org.
Reading
Participants are expected to undertake some self-study of the programme materials during the session and to
devote some time to revision, should they wish to take the end of course assessment.
Language
The programme will be conducted in English.
Cancellation Policy
Cancellation of registration will be granted upon receipt of written request 7 days prior to the start of the programme
on 18 June 2007. Requests received after this date will not be entertained.
Please note that all cancellation of registration will be subjected to a 10% processing fee.
Further Enquiries
For clarification on the certificate programme, please email to cccm@inceif.org or call Umar Mohammed Idris at
+603-2781 4026.
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Offered by
INCEIF
The International Centre for Education in Islamic Finance (INCEIF) was established to
develop Islamic finance professionals and experts in order to address the human capital
needs of a rapidly expanding industry. Its main focus and objective is to produce high
calibre professionals for the global Islamic financial services industry through INCEIF’s
professional certification programme, the Certified Islamic Finance Professional (CIFP),
Masters and Ph.D. in Islamic Finance programmes.
NASD and NASD International
NASD is the leading private-sector provider of financial regulatory services in the U.S.,
dedicated to investor protection and market integrity through effective and efficient
regulation and complementary compliance and technology-based services. Established
in 1938, NASD has long served as the primary self-regulator of the U.S. securities
industry. NASD is overseen by the U.S. Securities and Exchange Conmmission (SEC)
and, under national law, virtually every broker-dealer in the U.S. that conducts securities
business with the public must be a member of this private, not-for-profit organization.
NASD International, a department of NASD headquartered in London, leverages NASD’s
nearly 70 years of experience as a regulator to offer consultancy and advisory services;
education and training; regulatory technology; and dispute resolution programs. These
services build on NASD’s day-to-day regulatory work, clients’ needs and circumstances,
and the experience and expertise gained from NASD International’s work in both
developed and developing markets.
ICMA Centre, the University of Reading
The ICMA Centre was founded at the University of Reading in 1991 to provide postgraduate
degrees in Securities, Investment and Banking, and academic oversight of the ICMA’s
professional education programmes. In 1998, the ICMA funded a new purpose-designed
building to allow a major expansion in student numbers and to be the first to integrate a
dealing room into its teaching and learning. It became the largest specialist provider of
university-level securities market education in Europe. In 2005, ICMA increased its total
donation to the university to over £10 million when it agreed to fund an expansion of the
existing building and its facilities. The ICMA Centre is part of the University’s Business
School, which placed in fourth equal position out of 100 UK universities in this field in the
most recent UK Government Research Assessment Exercise (RAE).
Acknowledgement and Appreciation
INCEIF, NASD and the University of Reading wish to record our acknowledgement and sincere appreciation to the
following parties for their support and contribution in organising this programme.
Bank Negara Malaysia
Securities Commion, Malaysia
Islamic Banking and Finance Institute Malaysia (IBFIM)
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Registration Form
CERTIFICATE IN COMPARATIVE CAPITAL MARKETS:
ISLAMIC AND CONVENTIONAL PERSPECTIVES
We wish to register (sponsor) the following candidates from our organisation. The relevant details of the proposed
participant are as follow:
No.
Name / Designation
Contact Details
Office Phone
Email
RM
Mobile
Assessment
Yes
No
1
2
3
Less 10%
Total
Details of Sponsoring Organisation:
1. Organisation Name: __________________________________________________________________________
2. Contact Person: ______________________________________________________________________________
3. Designation / Department: ______________________________________________________________________
4. Address of Organisation: _______________________________________________________________________
______________________________________________________________________________________________
______________________________________________________________________________________________
Contact No.: _______________________ Fax No.: ____________________ E-mail: _________________________
Payment Details:
Cash
Cheque / Demand Draft / Payorder No. (*) _________________________________________________________
Amount _______________________________________________________________________________________
All payment must be made payable to INCEIF.
(*) Only local clearing cheques will be accepted.
(Signature of the Authorised Person with Designation)
Contact person for the programme:
Umar Mohammed Idris
Programme Officer
INCEIF, 2nd Floor, Annexe Block, Menara Tun Razak, Jalan Raja Laut, 50350 Kuala Lumpur.
Telephone: +603 2781 4026
Facsimile : +603 2694 6831
E-mail:
cccm@inceif.org
(718736-K)
2nd Floor, Annexe Block
Menara Tun Razak
Jalan Raja Laut
50350 Kuala Lumpur
MALAYSIA
Telephone : +603 2781 4000
Facsimile : +603 2694 6831
Email
: cccm@inceif.org
Website : www.inceif.org