islamic finance

    THE SHARIAH SUPERVISORY BOARD IN THE ITALIAN CORPORATE GOVERNANCE CONTEXT

    by Stefano Loconte

    As commonly known, the Shariah supervisory board has the crucial role of controlling and providing guidelines, advice and Fatwas to banks and institutions regarding Shariah compliant incomes and earnings.

    In most Islamic countries, the financial institutions are ‘highly recommended’ to establish an independent Shariah supervisory committee even if not explicitly legally required.

    Therefore, is it feasible in Italy to create in a joint stock company an internal board to supervise Shariah compliance?

    Finds the answers and considerations on these issues by our Managing partner Stefano Loconte on IFN Volume 17 Issue 43 dated the 28th October 2020.

    You can read it online at this link 

    The ‘Made in Italy’ brand with Halal certification

    By Stefano Loconte

    Everybody knows the worldwide relevance of Italy’s mark of quality as much as the importance and the prestige of Halal certification.

    In the common opinion, ‘Made in Italy’ means beautiful and well produced, and is recognized as a trademark itself.

    At the same time, the Halal market has gained recognition globally not only in Muslim countries but also in Muslim minority countries, including Italy. Furthermore, the category of ‘Halal’ is nowadays not only for foodstuff s and beverages but also for fi nance, insurance, cosmetics and medicines.

    This represents a unique opportunity for Italian companies and firms to expand their markets to Muslim communities in the Mediterranean area and the Middle East and strengthen their business. But all that glitters is not gold.

    The acceptability of Halal certification by an Italian company depends on many different factors, which we have analysed in this article,  first published in Islamic Finance news Volume 17 Issue 38 dated the 23rd September 2020.

    Download and read the full article as PDF at this link (Download)

    Italian banks fast embracing sustainable and environmentally friendly investments

    By Stefano Loconte

    Read the contribution of our founder Stefano Loconte, published in Islamic Finance news Volume 17 Issue 33 dated the 19th August 2020, about the new sustainable and environmentally friendly investments (ESG) Italian Baks are rapidly embracing.

    Environmental, social and governance (ESG) factors are rapidly arising in investors’ awareness worldwide and expected to grow in the Islamic finance industry due to a strong link between the two.

    Such sustainable notions also exist in Islamic finance and the size is reportedly substantial. For example, Waqf, which is a donation of an asset or cash for religious or charitable purposes with no intention of reclaim, is construed as a type of socially responsible financing. Therefore, it is possible to imagine the thin alignment between the Islamic finance industry and these sustainable factors

    Sustainability, equality and a clean environmental record are the essential factors of financial performance and savvy investors are starting to embrace them. 

    In such a scenario, sustainable investment funds are confirming their efficiency in managing underlying risks and delivering more resilient returns because they support and finance companies that are preserving the wellbeing of the planet and the community.”

    Read the full Issue at this  link

    or download the PDF version here (Download)

    Special requirements to establish an Islamic bank in Italy

    By Stefano Loconte

    Our Managing Partner has analysed special requirements to establish an Islamic bank in Italy on this article  which was first published in Islamic Finance news Volume 17 Issue 30 dated the 29th July 2020

    “The possibility of opening an Islamic bank in Italy can be a reality but it requires respecting binding rules and specific procedures.

    In fact, institutions that could offer Shariah compliant financial products and services could collaborate with Islamic banks or branches of an Islamic bank established in another European or extra-EU country. In any case, each type of Islamic financial institution needs a Shariah board, or Shariah supervisory board (SSB), that sits at the top of the company’s governing structure”

    Read the full article here  online on IFN News 

    Otherwise you can download a PDF of the single page with the article, here as follow  (Download)

    ⁣Are Islamic Finance operations feasible in Italy?

    By Stefano Loconte for IFN Islamic Finance News Volume 17 Issue 26 (1st July 2020)

    “It is remarkable that the Italian legal framework does not forbid but at the same time does not even expressly authorize these operations. The main reason why these operations are not performed in Italy is due to the fiscal costs. In fact, these financial operations are subject to double taxation compared to the traditional ones. The costs incurred will not be, economically speaking, sustainable for the banks. At this point, it seems necessary for the introduction of a specific framework to balance the Islamic finance model with the traditional models, in line with what has has already been done in other European member states” 

    Read the full contribution of our founder Stefano Loconte, published in Islamic Finance news Volume 17 Issue 26 dated the 1st July 2020, about the possibility and the difficulties of creating the “Islamic windows” in Italy.

    https://www.islamicfinancenews.com/are-islamic-finance-operations-feasible-in-italy.html?access-key=acb6ae8893c33e5d6e4137df1af36760

    You can also download the single PDF page at this link (Download)

    Which rules for Italian market to open the door to Islamic financial instruments?

    LOCONTE& PARTNERS FOR IFN ISLAMIC FINANCE NEWS

    Read the contribution of our founder Stefano Loconte, published in Islamic Finance news Volume 17 Issue 18 dated the 6th May 2020, about the set of rules that oversee the issuance of Islamic financial products in Italy.

    “The possible offer of Islamic financial products, both by Italian institutions and Islamic windows in Italy, is a real perspective that has to be taken into consideration in order to expand the chances for Italy to gain new investments and grant investors the diversification of their investments.”

    Here the link: https://www.islamicfinancenews.com/which-rules-for-italian-market-to-open-the-door-to-islamic-financial-instruments.html?access-key=acb6ae8893c33e5d6e4137df1af36760

    As Alternative, you can download the single page here.