Kuala Lumpur, 29 March 2016 – INCEIF is happy to announce that our Masters in Islamic Finance Practice (MIFP) programme has received full accreditation by the Malaysian Qualifications Agency for both the online and face-to-face study options.
The MIFP was introduced in June 2014 to replace the flagship Chartered Islamic Finance Practice which was first offered by INCEIF in 2006. The MIFP offers 15 papers which are 14 core papers :
- Financial Management
The course covers basic finance concepts of risks, returns, present and future values and applies techniques to evaluate financial assets. Firm specific decisions such as capital structure, dividend policy, and level of desired diversification, financial planning and forecasting and working capital and cost of capital management are all discussed in light of maximising the value of the firm. Students are also taught to analyse the market, industry and firm specific qualitative information to the quantitative numbers when making tactical and strategic investment and financing decisions. Some guidelines to ethical issues in value maximisation decisions are also emphasised.
- Quantitative Method
The course covers rudimentary statistical techniques in analysing data. It starts with descriptive statistics and then build-up various concepts related to data analyses. These include probability, probability distribution function, sampling and sampling distribution. Based on those concepts, steps in hypothesis testing are detailed. Various cases are discussed for testing hypotheses. These include (i) mean, (ii) proportion and (iii) variance for one- and two-samples. Finally, the course covers basic approaches in analysing correlations between variables, namely, by means of correlation analysis and simple linear regression analyses.
- Financial and Managerial Accounting
The paper is weighted at 70% financial accounting and 30% management accounting. The first part inter-relates the business functions of financing, investment and operation to accounting recording and valuation process and financial statements. It goes through from source documents to financial statements with some emphasis on financial assets and liabilities in accordance with IAS39, 32, IFRS7 and 9. In addition, Performance analysis of entities and the importance of the cash flow statement vs. income statement in the “true” performance of entities vs. paper performance are emphasised. The second part of the paper takes the student through the information of management accounting information for decision making with emphasis on service sector organizations such as banks. The course takes the students through traditional cost classification and product costing techniques as well as modern activity based costing relevant to business. Finally the students are taught to prepare and use budgets as well as conduct and make use of cost volume profit analysis to make decisions.
- Economics for Islamic Finance
This course allows the student to develop a critical understanding of the development of Islamic economic and finance theory and become more appreciative of the contributions made by Muslim thinkers. Other than referring to the Quran and Sunnah as the key referral materials, this course also discusses the related theories and the current economics and finance issues from the conventional perspective.
- Shariah Aspects of Business and Finance
This module consists of three major parts, the first part Islamic Jurisprudence covering the sources of Shariah, Ahkam al-Shariah, Legal maxims and Maqasid al Shari’ah; the second part theory of Islamic contract covering the general theory of contract, Ahliyyah/capacity, Formation of contract, Terms and conditions, Performance of contract; Shari’ah. The third part is about compliance covering Hisbah, Ijtihad, fatwa, Shari’ah board, and Shari’ah non-compliance risk.
- Shariah Rules in Islamic Financial Transactions
The aim of this module is to guide students to analyse the application and mechanism of the most widely used Shariah principles/transaction Islamic finance such as muḍarabah, murabahah, baiʾ bi thaman ajil / baiʾ muajjal, salam, istisnaʿ, ijarah, baiʾ al-ʾinah, tawarruq, hawalah, kafalah, wakalah, wadiah, and rahn. The module will cover the concept of each contract along with their types, pillars, terms and conditions to ensure its shariah compliance in execution and application.
- Ethics and Governance
This course is designed to provide an understanding of the framework in which ethical principles are linked with the practices of corporate governance in a market based economy. It covers private, public and voluntary sector corporate entities. Students are expected to understand the link between ethical economic and legal perspectives when applying and evaluating the governance of profit and non-profit organisations. This is because separation between ownership and management can be a potential source of conflict in achieving sustainability of such organisation. This course will cover conventional and Islamic perspective to the concepts of corporation as legal entities and how they ought to be regulated, guided, and led. Issues relating to the role of directors, boards of directors and board of committees as they represent shareholders, investors and stakeholders will be given significant coverage in this course.
- Accounting for Islamic Finance
The course begins with a discussion of accounting in the Islamic and conventional perspectives. This is followed by a comparison of the conceptual framework including objectives according to according to AAOIFI and IFRS. A comparative study of Financial Statements of Islamic Financial Institutions, prepared under AAOIFI and IFRS standards is then carried out to distinguish differences and relevance and to evaluate their “Islamicity”. The course then prepares students to demonstrate the effect of Islamic Finance Transactions in the Financial Statements under both IFRS and AAOIFI as well as unique financial statements and additional disclosures relevant for IF transactions. The paper explains the financial reporting of takaful companies. Next, Issues in Shariah auditing are discussed along with the Shariah governance framework of BNM and IFSB as well as AAOIFI standards. Finally, the students are taught to analyse IFI financial statements from a conventional and Maqasid Shariah perspective.
- Islamic Insurance
The course examines risk from the Islamic perspective and ways of mitigating it in accordance with Shariah and explains why insurance is forbidden and hence the advent of takaful. It discusses the various takaful business models, products and the key operational process of takaful. The study of the regulatory environment in various jurisdictions is a must for all takaful students as the industry is highly regulated. The actuary plays a key role in the takaful organization and its position is a requirement in most jurisdictions. The study of the actuarial principles and concepts would include areas of product design, pricing, underwriting, investments and reserving.
- Islamic Banking Practices
This course will examine the Shariah principles that are entrenched in Islamic Banking and Islamic Banking operations. This course will also discuss the legal and regulatory aspects of Islamic Banking and recent developments in this industry. Students will learn how Islamic Banking institutions are managed to ensure its viability and profitability.
- Structuring Financial Requirements
The course is designed to equip students with basic understanding of customers’ needs and behaviour as well as principles, rules and practices in structuring financial solutions (both deposits and financing). Students will also be given the tools and techniques for assessing the customers’ appropriate facilities, required amounts, repayment capabilities and methods on how to manage the banking relationship. Among the topics covered are the principles of financing, understanding business environment, quantitative and qualitative analysis, structuring/packaging financial requirements and managing financing portfolio.
- Risk Management for Islamic Financial Institutions
An Islamic financial institution (IFI), as a business entity is not exempted from both systematic and unsystematic risks. If all the risks are properly identified, measured and mitigated, an IFI’s overall mission, goals and objectives will not be severely jeopardized. Students are not only being exposed but are also required to learn about the fundamentals of risk and their management. In addition, the current risk environment, risk issues, frameworks, guidelines, standards and strategies will also be discussed.
The objective of this course is to equip students with the fundamentals of risk management in finance. Special emphasis will be accorded towards risk management in Islamic financial institutions. In addition, knowledge on risk issues both at macro and micro levels such as risk philosophy, policy, process, framework, guidelines, strategies and regulatory requirements will also be disseminated to students, complete with quantitative tools to measure various types of financial risk, operational risk and capital adequacy. Shariah risk and fiduciary risk that are peculiar to Islamic financial institutions will also be emphasized.
- Islamic Capital Market
This course is designed to equip students with the working knowledge of the structures of the instruments and regulatory and shari’ah frameworks of the ICM within a dual-banking environment. In achieving these twin objectives, students will be exposed to topics such as, but not limited to, the structure of the Islamic Capital Markets across different jurisdictions, regulatory and shari’ah frameworks, and various structures and contracts of shari’ah compliant ICM instruments. Topics include examining the pricing mechanism of the existing money market instruments, analyzing various sukuk structures issued globally, cases on sukuk default, shari’ah approved derivative instruments, foreign exchange market and current issues in ICM.
- Financial Services Marketing
The course aims to equip students with the foundation of marketing principles which covers the core concepts of marketing, the marketing process, the environmental scanning and the marketing mix. This is further deliberated to the application of Shariah principles and rules in ensuring that the financial services marketing is done in an ethical way and uphold the Shariah values in every aspects of business starting from the organizational strategic planning process, product development, pricing strategy, distribution channels, selling and promotion.
In order to attract business prospects and retaining the existing customers, students need to understand the critical function of customer relationship management in achieving the customers’ objective for reliable products and excellent services delivery that eventually give them a satisfaction. Further, to have a sustainable business within the highly competitive environment, apart from being a Shariah-compliant entity; the Islamic Financial Institution should also be socially responsible to its surrounding and the public at large in line with the precept of Islam.
And one elective paper:
- Islamic Wealth Planning and Management
The Islamic wealth management has been part and parcel of Islamic finance. The main philosophy of Islamic wealth management is that wealth belongs to Allah (swt) and human beings are mere trustee.
- Shariah Issues in Islamic Finance
This module is based on thorough discussion and deliberation on the major Shari’ah issues debated in the Islamic finance industry. It covers the major aspects of Islamic finance including banking, capital market, Takaful and wealth planning and management. The module exposes the students to different issues and cases debated in Islamic finance from a Shari’ah perspective along with their resolutions.
- Shariah Audit and Compliance
This module focuses on Shariah audit and compliance which represents one of the very important areas in Islamic finance. It reflects the degree of Shariah compliance in the Islamic financial institutions in the market place. The module covers different aspects of Shariah audit including the concept, the process, Shariah requirements and legal requirement that are needed to ensure an efficient exercise of Sharia audit.
- Commercial Law and Legal Documentation for Islamic Financial Services
The course aims to equip students with the basic knowledge about the requirements of legal documentation for Islamic financing facilities and services and particularly how these differ from documentation from conventional loans. They would be taught to gain familiarity with such documents and to spot inappropriate provisions included therein or essential ones missing therefrom. Such familiarity will enable them to challenge legal counsel on documents prepared by them and not accept without question documents produced by them. They will be trained to recognise various risks and the consequent losses that could arise from poor documentation.