The Islamic Finance Qualification (IFQ) is an entry-level qualification that covers Islamic
finance from both a technical and a Shariah perspective, providing the first international
benchmark in the area of Islamic finance. IFQ is an internationally recognised qualification that is awarded jointly by the Chartered Institute for Securities & Investment (CISI) - recognized by Ofqual, the UK government education regulator. The IFQ provides candidates with an understanding of the influence of Shariah in a business context and prepares candidates to hold key positions in the Islamic finance and Takaful industries.
The qualification is appropriate for existing and new employees and those seeking a
career in Islamic finance. Since its launch, the exam has been taken in over 40 countries.
• Key Islamic Finance Principles
• How Islamic and Conventional Finance Differ
• Structuring Rules for Islamic Financial Products
• Sukuk & Islamic Securitization
• Islamic Asset & Fund Management
• Financial Statements for Islamic Banks
• Corporate Governance for Islamic Finance
ABOUT THE IFQ
• The IFQ provides a basic knowledge of the general principles of Shariah (Fiqh al Muamalat) and its application to Islamic banking and finance.
• The IFQ covers the different types of Islamic finance contracts and products available.
• The IFQ examines key practices used in the Islamic financial markets and the principles behind investment selections.
• Gaining IFQ demonstrates having achieved a recognized level of understanding of Islamic finance and financial products.
• Employing IFQ holders indicates that a company is contributing to the development and promotion of high ethical standards amongst its staff.
• The IFQ syllabus, workbook, other teaching materials and exams have been developed with the support and collaboration of a panel of internationally recognized experts in Islamic finance.
• The IFQ was initiated and is supported by the Central Bank of Lebanon (Banque du Liban).
COMPREHENSIVE IFQ WORKBOOK AND E-LEARNING
A comprehensive workbook, produced specifically for the IFQ, has been approved for use
in preparation for your examination. The workbook includes full coverage of the syllabus
as well as revision questions. A copy of the workbook shall be sent to all examination
candidates by soft copy and post before you join the preparation course. For an additional
fee, candidates may also elect to receive e-Learning materials for self-study.
REDMONEY AND THE IFQ
REDmoney has been awarded Accredited Training Provider status by CISI. We conduct
intensive courses to allow candidates sitting the IFQ examination to effectively prepare
for their assessment. Our preparation courses are delivered by qualified and experienced
industry experts and fully cover the IFQ curriculum.
PREPARATION COURSE FORMAT AND SELF STUDY
The preparation course shall be delivered through lectures, examples, exercises and discussions. In addition to the IFQ workbook, candidates attending the course shall also receive supplementary course materials developed by REDmoney. It is estimated that in
addition to attending the course, between 80 and 100 hours of self study shall be required in order to pass the assessment.
QUICK FACTS ABOUT THE IFQ ASSESSMENT
Q: Is the IFQ assessment stand-alone?
A: Yes, the examination can be taken independently at any time of your choice.
Q: How many questions are included in the IFQ assessment?
A: 100 questions
Q: How long is the assessment?
A: Two hours
Q: What is the pass mark for the IFQ assessment?
Q: What is the current pass rate?
Q: Where do I take the assessment?
A: The examination can be taken via computer based testing at the test centre which is situated at a location closer to your vicinity.
Q: What do I receive should I pass the assessment?
A: Successful candidates shall receive a certificate jointly awarded by Chartered Institute of Securities and Investment, and ESA.
Welcome and Introduction
Session 1: A Practical Introduction to Islamic Finance
• Development of Islamic finance
• Players, markets and components of Islamic finance & banking
• Forbidden transactions in Islamic commercial law
• Theory of contracts – the framework to understand Islamic finance
• Key differences to conventional finance
• Promise and its application in Islamic finance
Exercise: Review of Islamic Finance Principles
Session 2: Islamic Financial Technique: Sale-Based Contracts
• Examining the key characteristics and uses of the following sale based Islamic products:
» Murabahah contract
» Bai al-Inah – why the controversy?
» Tawarruq (commodity Murabahah) – why is it so popular?
» Application of Murabahah in export finance
» Application of Tawarruq in financing and deposit products
» Application of Arbun to synthesise option behavior
» Salam contract
» Istisna contract
» Issues in letter of credit and letter of guarantee
Structuring Exercise: Sale based financing
Session 3: Islamic Financial Technique: Lease-Based & Equity Based Contracts
• Why leasing is an easy fit for Islamic finance and banking?
• Types of leasing – is there an Islamic finance lease?
• Lease based structures
• Issues in lease based structures
• Summary of all Islamic financing instruments
Session 1: Deposit Instruments
• Sources of funds versus uses of funds
• Understanding various deposit products
» Mudarabah investment account
» Sale based deposit instrument: Tawarruq and Bai Al-Inah
» Al-Wadiah deposit and issues
» Al-Wakalah deposit
» Comparison of all the deposit instruments
Session 2: The Islamic Bond Market – Sukuk
• The implications of Shariah principles on the debt capital market
• How do Sukuk differ from conventional bonds and securitization?
• Understanding various Sukuk structures:
» Mudarabah Sukuk
» Musharakah Sukuk
» Ijarah Sukuk
» Salam Sukuk
» Istisna Sukuk
• AAOIFI pronouncement on Sukuk
• Issues in the Sukuk market
Session 3: Islamic Asset & Fund Management
• The implications of Shariah principles on Islamic investment activities
• Understanding various funds structures:
• Issues related to Islamic fund management:
» Non-compliant income and stocks
» Managing liquidity and market risks
» The role of the Shariah board
Session 1: Islamic Insurance - Takaful
• The implications of Shariah principles on insurance operations
• Types of insurance and Takaful
• Takaful structure:
» Hybrid model
• Issues in Takaful operations:
» Role of Qard al-Hassan from shareholders
» Distribution of underwriting surpluses
» Technical provision – what is this?
» Internal risk pooling arrangement
• How does reTakaful work?
Session 2: Financial Statements for Islamic Banks
• Conceptual framework on IFRS and AAOIFI
• Understanding main financial statements prepared by companies
• Accrual method and its implication for Islamic banks
• Accounting treatment of Islamic financial instruments – a brief review
• Key issues in Islamic investment account – different accounting interpretations
• Zakat calculation methods
Session 3: Islamic Corporate Governance
• What is corporate governance and why is it important?
• Why banks present special corporate governance challenges?
• What risks do banks need to manage?
• Do Islamic banks face the same risks?
• Shariah boards and their implication on corporate governance
• Restricted Investment Account Holders (RIAH) and
• Unrestricted Investment Account Holders (UIAH) – how does it affect corporate governance?
• Corporate governance issues in Takaful industry
Course Wrap Up & Review