Legal Steering Islamic Finance Subgroup

The Legal Steering Islamic Finance Subgroup is exploring the development of a Shari’ah-compliant securities lending framework for ISLA members, including:

• Review of the key structures that could support an Islamic finance solution, including the use of a double wa’ad approach.
• Review of how the proposed framework can mirror the economic and operational features of the GMSLA as closely as possible.
• Discussion of the legal, regulatory, and Shari’ah compliance considerations across relevant jurisdictions.
• Review of core mechanics, including fee calculation, close-out provisions, transaction duration, and terminology.
• Consideration of documentation and market-access issues, including collateral treatment, buy-in concepts, tax and accounting implications, and any jurisdiction-specific requirements.
• Engagement with scholars, regulators, and member firms to refine the roadmap and develop agreed principles and key terms for the framework.

Frequency: As required.

Requirement: Member firms can apply to join the group. If you hold responsibility for or have an interest in Islamic finance or Shari’ah compliance, or would like to nominate a representative, please contact Tina Baker, Head of Legal Services, ISLA Connects Lead.

Regular attendance and active participation in relevant meetings are a prerequisite (ISLA reserves the right to modify attendance based on the current composition).