Annual Report FA - ciif-global.org · The Chartered Institute of Islamic Finance Professionals (CIIF) was established in 2015 as the professional body for Islamic ﬁnance practitioners,

CONTENT

Page 2 About the CIIF

Page 6 Corporate Information

Page 7 Grand Councillors’ Profile

Page 16 President’s Statement

Page 18 CEO’s Statement

Page 26 Financial Statement

Page 4 Key Information &Highlights

Page 10 CIIF Grand Council &Committees

Page 20 2017 Events,Activities & Highlights

The Chartered Institute of Islamic Finance Professionals (CIIF) was established in 2015 as the professional body for Islamic finance practitioners, succeeding the pioneering work of the Association of Chartered Islamic Finance Professionals Malaysia (ACIFP). It is tasked with the role of setting global quality professional standards for Islamic finance practitioners. These professional standards aim to elevate the quality and professionalism of its members who are Islamic finance practitioners, to ensure that the industry is supplied with high calibre talents to support its continued development and growth. The CIIF aims to connect its members with global opportunities, by catalysing international recognition of its professional standards through strategic linkages, establishing collaborations, partnerships, and network building. Through the Islamic Finance Profession Charter, the CIIF is recognised as the professional body for Islamic finance talents, and has been mandated to drive greater professionalism and quality in the development of Chartered Professionals in Islamic Finance.

To date, the CIIF has issued the following standards and guidelines:

Year Standards & Guidelines Description

Sets the ethical framework andprinciples for CIIF members

Sets the standards of professionalconduct aligned with the ethical

principles in the Code

CIIF Code of Ethics

2017

Sets the requirements for admissionof members and maintenance

of membership

CIIF Guidelines to Standards onAdmission of Membership (CG1)

Sets requirements for accreditation ofinstitutions for the purpose of being

recognised as providers of the CIIF ExecutiveDevelopment Programme (EDP)

CIIF Standards on Accreditationof Institutions (CS2)

CIIF Standards ofProfessional Conduct

Outlines the operating proceduresfor admission of members andmaintenance of membership

CIIF Guidelines to Standards onAccreditation of Institutions (CS2)

Outlines the operating proceduresfor accreditation of institutions

and running of the EDP

CIIF Standards on Admission ofMembership (CS1)

2015/6

PG2

C I I F A n n u a l R e p o r t 2 0 1 7

ABOUT THE CIIF

ABOUT THE CIIF

PG3


In 2018, the CIIF is currently working on the following:

Projects and Description Expected Completion

Chartered Professional in IslamicFinance (CPIF)

- The flagship professional qualification for the CIIF

Phased rollout

- Foundation (September 2018)- Intermediate (March 2019)- Proficient (September 2019)- Chartered (September 2019)

CIIF Standards on ContinuingProfessional Development

- The standards will set the framework and requirements for maintaining continuous professional development for members

August 2018

CIIF Professional Philosophy

- Part of the CIIF Ethical Framework, the CIIF Professional Philosophy will provide the context for the Code of Ethics and Standards of Professional Conduct

August 2018

Chartered and FellowshipMasterclass (CFM)

Onboarding key personnel of Islamic Financial Institutions as CIIF members’

5 cohorts

- September 2018 February 2019

KEY INFORMATION & HIGHLIGHTS

PG4


ASIA

EUROPE

NORTHAMERICA

SOUTHAMERICA

AFRICA

AUSTRALIA

HQ

MalaysiaOther regions

Total: 1017members

Total Member by Regions

>400% growth since launch(November 2015)

Note: Figures correct as at April 2018

Mem

ber (CP

IF)

Stu

dent

Total: 1017members

Senior

Associate

Junior

Associate

KEY INFORMATION & HIGHLIGHTS


PG5

Foundation

Intermediate

Proficient

Chartered

Two completed pioneersTwo on-going candidatesTwo partner Islamic banks

Executive DevelopmentProgramme

One Food for TalkOne CIIF TrainingOne Industry DiscourseOne WorkshopTwo Takaful SeminarsFive university roadshows

Events

One Code of ProfessionalConductThree StandardsTwo Guidelines

Standards

Four levels | First batch in 2018

Value Proposition

• A versatile and universal Islamic banking / Takaful professional

• An exemplar of Knowledge, Integrity, and Service

• Guided by Shariah in the delivery of professional duties

• Ready to assume wide-ranging responsibilities in various roles and functions

PG6


CORPORATE INFORMATION

GRAND COUNCILDato’ Badlisyah Abdul Ghani (Chairman)Abdul Rahman Mohd YusoffDr Syed Adam AlhabshiWan Ahmad Najib Wan Ahmad Lotfi Kamarul Ariffin Mohd Jamil Zafri Ab. HalimMohamad Rafe Mohamad Haneef Foziakhatoon Amanulla KhanProf. Dr Asmadi Mohamed NaimDr Irum SabaMohamed Ezra Mohamad AliMasumi HamahiraAmilia Nur Basir Ahmad Roslizawati Mohammad

EXECUTIVE COMMITTEEDato’ Badlisyah Abdul Ghani (Chairman)Abdul Rahman Mohd Yusoff Dr Syed Adam Alhabshi Wan Ahmad Najib Wan Ahmad Lotfi

ADMISSION ANDMEMBERSHIP COMMITTEE Abdul Rahman Mohd Yusoff (Chairman)Zafri Ab HalimAmilia Nur Basir Ahmad Masumi Hamahira

STANDARDS DEVELOPMENTAND REVIEW COMMITTEEDato’ Badlisyah Abdul Ghani (Chairman)Prof. Dr Asmadi Mohamed Naim Dr Syed Adam Alhabshi Wan Ahmad Najib Wan Ahmad Lotfi

NOMINATION COMMITTEEDato Dr Nik Ramlah Mahmood (Chairman)Datuk Seri Dr Nik Norzrul Nik Hassan Thani Wan Azman Wan Mamat Dr Azura Othman

COMPANY SECRETARYAD-Consult Sdn Bhd Suite 13.02, 13th Floor Menara Tan & Tan 207 Jalan Tun Razak 50400 Kuala Lumpur

REGISTERED OFFICEAD-Consult Sdn Bhd Suite 13.02, 13th Floor Menara Tan & Tan 207 Jalan Tun Razak 50400 Kuala Lumpur

MANAGEMENT OFFICE19th Floor, Main Building Menara Takaful MalaysiaJalan Sultan Sulaiman 50000 Kuala Lumpur

AUDITORPricewaterhouseCoopers (LLP0014401-LCA & AF1146) Level 10, 1 Sentral, Jalan Rakyat Kuala Lumpur Sentral P.O.Box 1019250706 Kuala Lumpur

PRINCIPAL BANKERCIMB Islamic Bank Berhad

GRAND COUNCILS' PROFILE


PG7

Dato’ Badlisyah Abdul GhaniDeputy CEO of Lembaga Tabung HajiPresident of CIIF

Dato’ Badlisyah Abdul Ghani is currently the Deputy Chief Executive Officer of Lembaga Tabung Haji. Previously, he was the CEO of Islamic Banking Division of CIMB Group. Before CIMB, he was attached to the offshore subsidiary of Bank Islamic Malaysia Berhad. He is also a member of the Board of Trustees for the Islamic Banking and Finance Institute Malaysia.

Dato' Badlisyah has extensive experience in the field of finance and is globally recognized as a leader in Islamic finance through the many international awards accorded to him.

Kamarul Ariffin Mohd JamilGroup CEO, Affin Holdings Berhad and Managing Director / CEO of AFFIN Bank Berhad

Kamarul Ariffin currently holds the dual role of Group Chief Executive Officer of Affin Holdings Berhad as well as CEO of Affin Bank Berhad. Prior to that, he was the CEO of Affin Islamic Bank Berhad. He has also held positions at Pengurusan Danaharta Nasional Berhad, Trenergy Malaysia Berhad and Shell Malaysia Trading Sdn Bhd in various capacities including business development and strategic planning.

Abdul Rahman Mohammed YusofHead of Shariah, OCBC Al-Amin

Deputy President of the CIIF

Abdul Rahman Mohammed Yusof is currently the Vice President & Head, Shariah Department of OCBC Al-Amin Bank Berhad. Prior to that, he spearheaded the Commercial Banking, Islamic Business Division. He was previously attached to CIMB Bank as the Head of International Credit & Investment Division. Abdul Rahman provides training for the AQIF (Associate Qualification in Islamic Finance)

certification by IBFIM and is a regular speaker on Islamic Finance matters.

Dr. Syed Adam AlhabshiPartner of CSQ Law Advocates & SolicitorsHonorary Secretary of CIIF

Dr. Syed Adam is a partner at CSQ Law Advocates & Solicitors. He holds a Ph.D. in Islamic Finance from the International Centre for Islamic Finance Education (INCEIF) and is also a holder of the Chartered Professional In Islamic Finance (CPIF). Before joining CSQ Law, Dr. Syed Adam was a Manager of the Shariah Secretariat in the Group Secretarial and Legal division of Malaysian Industrial Development Finance Berhad (MIDF).

Wan Ahmad Najib Wan Ahmad LotfiFormer Vice President & Head, Strategic Management & Shariah,

Great Eastern Takaful BerhadHonorary Treasurer of CIIF

Wan Ahmad Najib is currently part of a team involved in establishing a takaful company. He was formerly the Vice President & Head of the Strategic Management & Shariah division of Great Eastern Takaful Berhad. He played an instrumental role in the setting up of Great Eastern Takaful and is responsible for ensuring Shariah compliance for the company’s business operations. He holds a Bachelor of Science (Honours) in Information Technology from Universiti Tenaga Nasional and a

Certificate in Shariah from International Islamic University Malaysia.


PG8


Dr. Irum Saba Assistant Professor-CEIF, Institute of Business Administration Karachi

Dr. Irum Saba is currently a Joint Director of State Bank of Pakistan (SBP), and also a Coordinator under Research and Academics at Centre for Excellence in Islamic Finance (CEIF), Institute of Business Administration, Karachi, Pakistan. She is also a Programme Director, MS Islamic Banking, and Finance and Assistant Professor of Economics and Finance, from Institute of Business Administration, Karachi. Dr. Irum Saba holds a Ph.D. in Islamic Finance from International Centre for Education in Islamic Finance (INCEIF), Malaysia.

Mohamed Rafe bin Mohamed HaneefCEO, CIMB Islamic Bank Berhad

Mohamed Rafe is the Chief Executive Officer of CIMB Islamic Bank Berhad. He was previously with HSBC Amanah as Managing Director of Global Markets for the Asia Pacific Region before being appointed as the CEO of HSBC Amanah Malaysia. He has also held high ranks in global banks, an international asset management company and a legal firm. He holds a Bachelors of Law from the International Islamic

University of Malaysia and a Masters of Law from Harvard Law School.

Zafri Ab HalimCEO of Etiqa Family Takaful Berhad

Zafri Ab Halim currently holds the Chief Executive Officer post at Etiqa Family Takaful Berhad. Prior to joining Etiqa, he served as the CEO in Great Eastern Takaful Berhad. He has more than two decades of experience in the insurance and financial services industry. He holds a Bachelor’s Degree in Accountancy from Universiti Pertanian Malaysia, and a Master of Science in Project from Washington University, US.

Foziakhatoon Amanulla KhanChief Business Development Officer of Alliance Bank Malaysia Bhd

Fozia Amanulla is the Chief Business Development Officer of Alliance Bank Malaysia Berhad and previously held the role of Chief Executive Officer and Executive Director of Alliance Islamic Bank Berhad (AIS). Prior to joining AIS, she served several leadership positions including Chief Executive Officer of EONCap Islamic Bank Berhad and was with Aseambankers Malaysia Berhad (now known as Maybank

Investment Bank) as the Head of Islamic Debt Capital Markets.

Prof. Dr. Asmadi Mohamed NaimDean, Islamic Business School, Universiti Utara Malaysia

Prof. Dr. Asmadi is a Professor and a Dean of Islamic Business School, Universiti Utara Malaysia. He is currently a member of both Shariah Advisory Council of Bank Negara Malaysia and Shariah Advisory Council of Securities Commission of Malaysia. Asmadi graduated from the University of Jordan with a Degree in Shariah and from International Islamic University Malaysia with a Masters and Ph.D. in Fiqh and Usul

Fiqh.



Mohamed Ezra Bin Mohamad AliManager, Planning Unit, Mizuho Bank (Malaysia) Bhd

Mohamed Ezra is serving as a Manager of Mizuho Bank (Malaysia) Berhad’s Planning Unit. Previously, he was attached with Kenanga Capital Sdn Bhd as the Assistant Vice President of Islamic Product Development. Ezra holds a Bachelor of Arts (Hons) Accounting and Financial Studies from University of Central Lancashire, United Kingdom, a Master of Science in Corporate Finance from the University of Salford, Manchester, UK and has a Chartered Islamic Finance Professional (CIFP) from INCEIF.

Roslizawati MohammadTransformation & Productivity Unit, Maybank

Roslizawati is currently attached to Maybank’s Transformation and Productivity Unit under the President/CEO Office as a Vice President. She was a Manager in Risk and Governance Unit (R&G) in Advisory Services with Pricewaterhouse Coopers Advisory Sdn Bhd, and was an internal auditor with Ernst and Young, UK, before joining E&Y’s Performance Improvement Consulting Unit upon her return to Malaysia. She then moved into the financial services industry in 2011 working for AmIslamic Bank Berhad in the area of strategic planning and project management. She is a graduate of London School of Economics in Accounting and Finance.

Masumi HamahiraAdvisor, Islamic Finance Department, MUFG Bank (Malaysia)

Masumi Hamahira is currently the Advisor for Islamic Finance Department of MUFG Bank (Malaysia) where he has led the team in winning several international accolades. He has more than 17 years working experience in the banking and finance industry at Bank of Tokyo-Mitsubishi UFJ (BTMU) before his appointment as Advisor. He holds a Bachelor Degree in Economics from Keio University, Japan and is currently a Ph.D. candidate at the Institute of Islamic Finance and Banking, International

Islamic University Malaysia.

Amilia Nur Basir AhmadAssistant Vice President, Shariah Risk, Al Rajhi Bank Malaysia

Amilia Nur is currently with Al Rajhi Bank Malaysia as Assistant Vice President, Shariah Risk, and was previously with AmBank Group as Manager, Shariah Risk-Group Risk Management for about two (2) year. Before that, she was with Maybank Islamic assisting the Management in Islamic, she was a Senior Executive of RHB Islamic Risk Management and RHB Group Shariah Risk Management.

PG9

CIIF GRAND COUNCIL & COMMITTEES

PG10


1. CIIF Grand Council

As the highest governing authority in the CIIF, the Grand Council is responsible for the overall management of the business and affairs of the institute, as described in Part 6 of the Articles of Association. The Grand Council has the overall responsibility for guiding the Management, and ensure that it performs its function as the organ responsible for the fulfilment of the institute’s mandate and plans. The Grand Council’s powers and duties are subject to the provisions of the Companies Act 2016 and the Articles.

Members of the Grand Council 2017

AttendanceRecord in 2017

Total No of MeetingsArranged in 2017

Name and Position Tenure

6 / 66Dato’ Badlisyah Abdul GhaniPresident

June 2017 – present(as 1st elected President)

6 / 66Abdul Rahman Mohamed YusoffDeputy President

June 2017 – present(as 1st elected Deputy President)

6 / 66Dr Syed Adam AlhabshiHonorary Secretary

June 2017 – present(as 1st elected Honorary Treasurer)

3/33Wan Ahmad Najib Wan Ahmad LotfiHonorary Treasurer

June 2017 – present(as 1st elected Honorary Treasurer)

6 / 66Amilia Nur Basir AhmadGrand Councillor

June 2017 – present

3 / 66Dr Irum SabaGrand Councillor


4 / 66Mohamed Ezra Mohamad AliGrand Councillor



PG11


6 / 66Prof Dr Asmadi Mohamed NaimGrand Councillor


0 / 66Mohamed Rafe Mohamed HaneefGrand Councillor


0 / 66Kamarul Ariffin Mohd JamilGrand Councillor


2 / 66Roslizawati MohammadGrand Councillor


2 / 33Foziakhatoon Amanulla KhanGrand Councillor


3 / 33Masumi HamahiraGrand Councillor


1 / 33Zafri Ab HalimGrand Councillor





Legend

June 2015 – June 2017 (as Founding President)

June 2015 – June 2017 (as Founding Deputy President)

June 2015 – June 2017 (as Founding Grand Councillor)

June 2015 – June 2017 (as Founding Honorary Secretary)

June 2015 – June 2017 (as Founding Honorary Treasurer)


PG12


2. CIIF Executive Committee The function of the Executive Committee, in accordance with Part 8 of the Articles of Association, is to exercise general control and oversight over the day-to-day management and administration of the institute undertaken by the the CIIF Management team; to take or make such follow-up decisions and actions as are necessary or expedient in order to give effect to the decisions of the Grand Council; and to carry out any other functions as the Grand Council may from time to time delegate, except the functions stated in Article 29.2. The Executive Committee comprises the office bearers as elected by the Grand Council.

Members of the Executive Committee 2017




4 / 44Dato’ Badlisyah Abdul GhaniPresident & Chairman

June 2015 – June 2017(1st term)June 2017 – present(2nd term)

1 / 22Kamarul Ariffin Mohd JamilFormer Deputy President &Deputy Chairman

June 2015 – June 2017(1st term)

0 / 22Dr Irum SabaFormer Honorary Secretary


2 / 22Mohamed Ezra Mohamad AliFormer Honorary Treasurer


2 / 22Abdul Rahman Mohamed YusoffDeputy President & Deputy Chairman

June 2017 – present(1st term)

1 / 22Dr Syed Adam AlhabshiHonorary Secretary


2 / 22Wan Ahmad Najib Wan Ahmad LotfiHonorary Treasurer




PG13

3. Admission & Membership Committee The Admission & Membership Committee is responsible for reviewing matters relating to membership of the institute, including reviewing and appraising applications for membership admissions prior to endorsement from the Grand Council; review membership fees and recommend to the Grand Council changes (if any) for consideration; to deliberate and bring to the attention of the Grand Council any issue or matter of importance that impinge on the membership structure, requirements, viability, and future outlook on the institute’s membership.

Members of the Admission & Membership Committee 2017




5 / 55Kamarul Ariffin Mohd JamilFormer Chairman

June 2015 – June 2017(1st term)June 2017 – December 2017(2nd term)

0 / 33Abdul Rahman Mohamed YusoffCurrent Chairman


0 / 55Dr Irum SabaMember


4 / 55Amilia Nur Basir AhmadMember


2 / 22Zafri Ab HalimMember



PG14


4. Standards Development & Review Committee

The Standards Development & Review Committee is responsible for matters relating to the development and review of the CIIF standards and guidelines, including the formulation of the framework, policies, and processes. Since 2016, the SDRC has also been responsible for overseeing the development of the CPIF programme jointly with the Executive Committee, as delegated by the Grand Council. The SDRC has been responsible for the development and issuance of the Code of Ethics and Standards of Professional Conduct, and is currently overseeing the development of the CPD Standards as well as the CIIF Professional Philosophy.

Members of the Standards Development & Review Committee 2017


2 / 22Dato’ Badlisyah Abdul GhaniChairman


2 / 22Prof Dr Asmadi Mohamed NaimMember


1 / 11Dr Syed Adam AlhabshiMember


1 / 11Wan Ahmad Najib Wan Ahmad LotfiMember




1 / 11Mohamed Ezra Mohamad AliMember


0 / 11Roslizawati MohammadMember




PG15

5. Nomination Committee

The Nomination Committee is responsible for reviewing the list of candidates nominated for election to the Grand Council at the CIIF Annual General Meetings. The committee meets once a year, and reviews the eligibility of candidates based on parameters set by the Grand Council.

Members of the Nomination Committee 2017


1 / 11Dr Azura OthmanMember


1 / 11Dato’ Dr Nik Ramlah MahmoodChairman


1 / 11Wan Azman Wan MamatMember




1 / 11Datuk Seri Dr Nik NorzrulNik Hassan ThaniMember


Assalamualaikum w.b.t.

To our esteemed members,

We have come a long way since our establishment in 2015 to enhance the professionalism of the Islamic financial services industry as we capitalise on the rapid growth of Islamic finance worldwide. This marks the first annual report published by the CIIF, with the financial position statement for the year ending 31 December 2017. As a professional body responsible for global quality standards for Islamic finance professionals, it has been a challenging year financially, owing to funding constraints that have affected our activities in various ways. This was not a situation that was exclusive to the CIIF, and indeed other affiliates in the Islamic finance talent development space would no doubt have gone through a similar journey over the past year. In our case, this was partly down to the fact that we have yet to reap the benefits of having our own flagship professional qualification to boost revenue generation for this esteemed institute. I am pleased to say, however, that the progress of development continues apace, and the team has garnered wide-ranging support from both the regulator and industry players alike. This encouraging support has been reflected by way of funding from the STF-i (Staff Training Fund-i) that the CIIF will utilise for the development of the professional qualification, and the relevant parties administering the STF-i are also committed towards providing the CIIF with the necessary assistance towards achieving long-term sustainability.

PRESIDENT'S STATEMENT

PG16


As such, the net liabilities position at the end of 2017 has been effectively offset by the approval given at the end of the same year for the CIIF to benefit from the STF-i, with the funds being transferred in January 2018. The Grand Council has deliberated the matter on financials and has agreed that the CIIF will continue to be a going concern for the next few years until its revenue through CPIF, Continuing Professional Development (CPD), and other income generating activities solidifies, with continued momentum towards achieving sustainability within the shortest feasible period of time.

The year 2017 also marked an important milestone for financial services talent development, with a Joint Declaration by the conventional banking institutions to support the Asian Institute of Chartered Bankers (AICB). The declaration commits conventional banks to professionalise their workforce through the attainment of the AICB’s qualifications, in particular the Chartered Banker (CB) qualification that is jointly awarded together with the Chartered Institute of Bankers Scotland.

The Joint Declaration shows a significant push towards supporting the agenda to professionalise the industry, with the aim to enhance the level of professionalism and technical capabilities of banking professionals in order to elevate the reputation of the industry. This effort will go a long way towards solidifying the trust between the public at large and the professionals within the banking sector, and the wider financial services industry.

I am pleased to inform that a similar commitment between the CIIF and the Islamic banking as well as takaful sectors is expected to take place in 2018. Member institutions of the Association of Islamic Banking Institutions Malaysia (AIBIM) and the Malaysian Takaful Association (MTA) have indicated their support for such an undertaking. Effectively, the CIIF’s forthcoming professional programme – the Chartered Professional in Islamic Finance (CPIF) – will become an essential qualification for the industry. This reflects the recognition of the CIIF’s role as a professional body for the Islamic financial services industry, and this development augurs well for the future role of the institute.

PRESIDENT'S STATEMENT


PG17

This initiative is part of a wider effort by the talent development institutions in Malaysia, guided by Bank Negara Malaysia, to further enhance professional education and training in Islamic finance. Establishing key strategic alliances with affiliates that include the Islamic Banking and Finance Institute of Malaysia (IBFIM), the Association of Shariah Advisors in Malaysia (ASAS), and the International Centre for Education in Islamic Finance (INCEIF) that aim to streamline roles and functions and achieve institutional synergies. This serves to strengthen the talent development landscape that will serve not only the Malaysian Islamic financial markets, but also Islamic finance markets from around the world. Through these collaborative relationships, the CIIF expects to be able to export its professional qualification to international markets gradually. In order to facilitate this, the CIIF will look towards establishing its international chapters at the earliest opportunity, and this will provide international members with the opportunity to be a larger part of the institute’s efforts to globalise its presence in support of Islamic finance talent development in various parts of the world.

Finally, I would like to thank all members for your continued support of the CIIF. As we continue to progress and grow our capabilities, I wish to implore every one of you to keep up your efforts in promoting Islamic finance and emphasise its key value propositions as not only a viable industry, but also one that is ethically and socially responsible by its very nature. As exemplars of Knowledge, Integrity, and Service, you are the ambassadors of the CIIF’s ideals in promulgating Islamic financial services amongst the general public and corporations. I also urge you to be more involved with our activities, and contribute your experience and expertise to the CIIF so that we can further extend the benefits of your insights to your fellow professionals and aspiring talents of the industry.

Together, we are stronger. We look forward to working with you, our members,for the greater good of the Islamic finance industry and that of the society at large.

Peace and blessings be upon you all.

Dato’ Badlisyah Abdul GhaniPresident

CEO'S STATEMENT

PG18


Assalamualaikum w.b.t.

Praise be to Allah that we have completed another eventful year here at the CIIF. We have continued to pursue our mandate to elevate the quality and standing of professionals in Islamic finance based on our three key strategic thrusts - Professional Development, Industry Recognition, and Global Outreach. As a result, I am pleased to inform that we have achieved several significant outcomes on behalf of our members; increased membership, new standards, partnership and collaborations on talent development as highlights on pages 4 and 5.

As of December 2017, we have reached almost 1,000 members that we are committed to serve and increase our responsibility towards in terms of continuous developments, enhancing competencies and wider market outreach.

One of our primary objectives for the year was to organise events and activities for members, including workshops, industry discourses, and talks to support their professional development. These events and activities provide opportunities for members to network and engage in discussions on issues related to Islamic finance.

Still on professional development, we had initially planned to have two distinct professional qualifications which are the Chartered Islamic Banker and also the Chartered Takaful Practitioner. However, after further deliberation, we have decided on streamlining the programmes into a comprehensive layered professional qualification which is the Chartered Professional in Islamic Finance or CPIF.

The CPIF will cater for both Islamic banking and takaful sectors through an integrated programme of study, wherein candidates may elect either the Islamic banking or Takaful tracks to suit their career needs. More information is available through the programme prospectus on the CIIF website.

The CPIF will be piloted throughout 2018 in partnership with Bank Rakyat through its new management trainee programme called “The Islamic Banker.” The commitment by Bank Rakyat to elevate the quality and standard of the human capital pool for the Islamic finance industry is certainly laudable, and I wish to express my sincerest gratitude to Bank Rakyat for supporting such an important initiative. I hope that this partnership will continue over the years and we look forward to forming synergies with more institutions in the future to support talent development in Islamic finance. Together, we can develop a greater pool of high-calibre professionals to support the growth of the industry and chart the way forward for Islamic finance globally.

To increase our recognition within the industry, we have continuously conducted engagements with the regulators, industry players, and strategic affiliates. The CIIF is currently part of the Strategic Coordination Committee of Bank Negara Malaysia, along with INCEIF, IBFIM, ISRA, and ASAS, that aims to streamline our respective roles and functions across the talent development landscape, through synergistic collaborations. The CIIF, together with other key affiliates, has been engaged in discussions to solidify our collaborative relationships and in the process to further define our respective complementary roles in Islamic finance talent development. It is expected that the solidification of these affiliates will result in a stronger alliance that will benefit professionals in Islamic finance, the industry, and ultimately, the customers of Islamic financial services.

CEO'S STATEMENT


PG19

We are currently in the midst of completing the CIIF’s Charter Bye-laws to be completed by the second half of 2018, following which both the Islamic Finance Profession Charter and the Bye-laws will be formally published. An industry-wide partnership with Islamic Finance Institutions (IFIs) in professionalising industry practitioners is also expected to be announced in 2018, cementing the initial recognition given under the Charter. This will go a long way towards promoting the value of highly qualified and competent professionals who are members of the CIIF.

As part of its long-term global aspirations, the CIIF has also begun laying the groundwork for expanding its footprint internationally. We had originally planned to establish a chapter in Somalia through the Somali Islamic Finance Professional Association (SIFPA); however, this had been put on hold due to the on-going development of the Charter Bye-laws. We will resume efforts towards this with SIFPA, as well as efforts to establish Chapters in other jurisdictions, once the Charter Bye-laws have been completed and issued.

All in all, 2017 has been quite a ride, with many unexpected twists and turns along the way. We have grown as a team, with many lessons under our belts now. The future is bright for the CIIF, and we must be heartened by the increasing level of engagements with the industry, and the growing recognition of our role and mandate. Now is the time for us to keep the momentum going towards achieving our objectives.

I wish to express my sincerest thanks to the CIIF Grand Council for the unwavering support and guidance that they have given to the CIIF Management. I especially wish to extend my utmost appreciation to the President for his visionary leadership, and for being ever-present in the proceedings of the Grand Council.

Special thanks to our key stakeholders and affiliates, including BNM, SC, AIBIM, MTA, AIF, SIDC, MIBA, IBFIM, INCEIF, ASAS, and ISRA, as well as our contemporaries at AICB and MII. Their affiliation is a source of guidance and support for a young institution like the CIIF.

Thanks to all our members for their continued trust and believe in the CIIF’s ideals. We would not be where we are today without their support. As ambassadors of the CIIF, we hope that our members fulfill their roles as exemplars of Knowledge, Integrity, and Service.

Finally, I would like to pay tribute to the staff of the CIIF. Fulfilling our mandate and responsibility to our members means that we have to be at the forefront of anticipating change and making sure that the CIIF is continuously valued and in demand. This would not have been possible without the support of the team that I am privileged to work with. I would also like to thank the supportive industry practitioners who have contributed their time, knowledge and expertise towards our progress and helped us move forward in strengthening the Islamic finance industry.

Together, we can be an important advocate for ethical behaviours and professional practices in Islamic finance.

Thank you.Dr. Azura Othman

2017EVENTS, ACTIVITIES & HIGHLIGHTS

PG20


The year kicked off with the CIIF 1st Anniversary Dinner & Charity Night 2017 held at Pullman Kuala Lumpur. The event was a celebration of CIIF’s 1st anniversary and launch of its Code of Ethics and Standards of Professional Conduct. Part of the proceeds of the event went to #1moment4them, a charitable body that supports education for Syrian refugees in Jordan. The Codes and Standards are part of the CIIF ethical framework that aims to advocate professionalism and ethical conduct amongst practitioners in the Islamic finance industry.

JAN2017

The CIIF’s CEO, Dr Azura Othman, delivered a presentation on “Taxation in Islamic Banking and Finance” at the IIUM Institute of Islamic Banking and Finance.

MAR2017

The CIIF participated in the Talent Development Seminar by the Malaysia Insurance Institute (MII) at Sasana Kijang, and our Associate Director, Mr Abdul-Samad Saadi, moderated a session on “Future Role of HR in Tomorrow’s Work Place”.

FEB2017

The CIIF held its first Annual General Meeting on 15 June 2017 at GTower Hotel, Kuala Lumpur. More than 30 members attended the session, during which the founding Grand Councillors were re-elected to continue their service for the next term. Members also elected four new Grand Councillors. Several motions and changes to the Memorandum and Articles of Association were tabled and approved during the meeting.

JUN2017


PG21

The CIIF co-hosted the FSI Aidilfitri Celebration held at Lanai Kijang together with AIF, AICB, ABS, MII, SIDC and IBFIM. The theme for the year was “Professional Retro-Raya”, and the sumptuous spread was clearly enjoyed by members and other industry professionals alike.

JUL2017

The CIIF Management Team had a brainstorming session joined by three Grand Councillors to discuss the strategic initiatives of the CIIF, with many viewpoints and ideas being put forward in supporting the future growth of the CIIF.

AUG2017

The CIIF once again co-hosted with the MII for “Takaful Forum: Challenges in the Next Decade” at Seri Pacific Hotel, Kuala Lumpur. Two of the speakers were members of the CIIF, Mr Wan Ahmad Najib, who is also CIIF Grand Councillor, and Mr Elmie Dato’ Haji Aman Najas.

NOV2017

The CIIF also participated in the AIF International Symposium themed “Talent and Innovation: Enhancing Productivity and Performance” alongside other affiliate institutions.

The CIIF previewed its forthcoming professional programme, Chartered Professional in Islamic Finance (CPIF) during the 3rd Annual Symposium on Islamic Finance organized by the World Bank, Islamic Research and Training Institute (IRTI) and Guidance Financial Group in collaboration with INCEIF. The CPIF is the CIIF’s contribution towards sustainable human capital development in the Islamic finance industry.

DEC2017


PG22


As part of its effort to promote membership of the CIIF, engagement sessions were held through out the year. Starting off with INCEIF, the CIIF’s CEO, Dr Azura Othman and Grand Councillor, Tuan Hj Abdul Rahman delivered a session entitled “Road to Greater Professionalism Amongst Islamic Finance Practitioners”

FEB2017

In May the CIIF paid a visit to Universiti Malaysia Kelantan, Kota Bahru. Grand Councillor, Dr Syed Adam shared his thoughts and experiences with the students and faculty members of UMK Faculty of Entrepreneurship and Business.

MAY2017

Next came the visits to universities in the northern region, namely Universiti Utara Malaysia in Sintok, Kedah, and Universiti Sains Malaysia, Penang. The Faculty of Islamic Finance of UUM and School of Management of USM gave welcome to the delegates from CIIF and CIIF was pleased to welcome on board the students as members of the CIIF.

MAR2017

The CIIF held a roadshow at Bank Muamalat Malaysia Berhad in its effort to introduce professional membership and its benefits. The CIIF shared its current development and initiatives taken in elevating talents in the Islamic finance industry to the employees.

SEPT2017

CIIF Engagement Sessions


PG23


The CIIF university roadshow continued with a visit to Kolej Yayasan Pahang. Grand Councillor, Mr Wan Ahmad Najib shared his experience in the Takaful industry with students and faculty members of the Faculty of Economics and Islamic Banking.

OCT2017

Universiti Sultan Azlan Shah, Kuala Kangsar was the next destination for the CIIF university roadshow. Grand Councillor, Mr Wan Ahmad Najib led an interactive session to a hall packed of the students on CIIF and Islamic finance.

NOV2017

The CIIF also participated in the IIUM Career and Study Fair held at the International Islamic University, Malaysia. The CIIF was there to guide students on their career path in Islamic finance through CIIF membership with a short talk given by Grand Councillor, Mr Wan Ahmad Najib.

CIIF Engagement Sessions


PG24


The first CIIF Training Series started off with “A Primer in Etiquette and Efficiency at Work” held at Sasana Kijang. The half-day session was attended by CIIF members, industry practitioners as well as students from two universities. The session was conducted by Mr Ahamed Zaharani Omar and Mrs Rozinah Yusof. Participants were given insights on key business conduct at workplace and a demonstration of dining etiquette.

MAR2017

The first CIIF Industry Discourse on “IFSA 2013: Its significance from Regulatory and Industry Players’ Perspectives” received overwhelming response from CIIF members and industry practitioners. Former Deputy Director of Bank Negara Malaysia, Ms Azleena Idris and CIIF Grand Councillor, Mr Kamarul Ariffin provided insights on the topic. The main takeaways from the session were that the future landscape in Islamic finance is evolving, collaboration is the key to success moving forward and clearer direction towards achieving socioeconomic goals of Islamic finance is needed.

MAR2017

The first CPD Session for Executive Development Programme (EDP) candidates was conducted by Grand Councillor, Tn Hj Abdul Rahman and CIIF member, Dr Nurliza Mydin. The CPD session is aimed at providing the CIIF’s members who are undergoing EDP with soft skills in business communication and presentation skills.

FEB2017

CIIF Event



PG25

One of the favourite sessions for 2017 was an informal knowledge-sharing and engagement event called Food for Talk. The first session, of a planned series, was delivered by Prof Dr Abbas Mirakhor titled “Metaphysics of Islamic Finance” held at Suria KLCC. It was well attended by CIIF members as well as interested professionals. The participants enjoyed the informal session and ambience as well as the engaging discussion on what was an enlightening and interesting subject.

NOV2017

The first CIIF Workshop Series on “Transforming Work to Worship” was held in Sasana Kijang. The facilitators, Dr Ashraf Iqbal and Dr Mohamed Qalib led the participants in an engaging session on linking day-to-day work and worship as espoused by the principles in the Quran. The session was attended by a good mix of CIIF members and industry practitioners.

JUL2017

CIIF Event

Chartered Institute of Islamic Finance Professionals(Incorporated in Malaysia as a company limited by guarantee and not having share capital)

Reports and Financial Statementsfor the Financial Year Ended 31 December 2017

FINANCIAL STATEMENT

PG 27-30 Directors’ Report

PG 35-40 Summary of SignificantAccounting Policies

PG 41-49 Notes to theFinancial Statements

PG 51-54 Independent Auditor’s Report

PG 31 Statement ofFinancial Position

PG 32 Statement ofComprehensive Income

PG 33 Statement ofChanges in Accumulated Funds

PG 34 Statement ofCash Flow

PG 50 StatuoryDeclaration

FINANCIAL STATEMENT


PG27


Directors’ Reportfor the Financial Year Ended 31 December 2017

The Directors hereby submit their report and the audited financial statements of the Company for the financial year ended 31 December 2017. To the best of their knowledge, the operations and business of the Company have been conducted in manners which are compliant with the Shariah.

Principal Activities

The principal activities of the Company, which was incorporated on 17 June 2015, are to develop, establish and issue, or collaborate in standards for Islamic finance development with respect to academic or professional qualifications by Islamic finance institutions. The Company also serves as common platform for Islamic finance professionals to express their concerns in the fields of Islamic finance.

Financial Results

RMNet deficit for the financial year (527,359) ===========

Directors

The Directors who have held office during the financial period and during the period from the end of the previous financial period to the date of the report are:

Dato’ Badlisyah Bin Abdul GhaniAbdul Rahman Bin Mohamed YusoffDr. Syed Adam AlhabshiWan Ahmad Najib Bin Wan Ahmad Lotfi (appointed on 17 November 2017)Kamarul Ariffin Bin Mohd JamilDr Irum SabaMohamed Ezra Bin Mohamad AliMohammed Rafe Bin Mohamed HaneefAmilia Nur Binti Basir AhmadProfessor Dr Asmadi Bin Mohamed NaimRoslizawati Binti MohammadZafri Bin Ab. Halim (appointed on 17 November 2017)Foziakhatoon Binti Amanulla Khan (appointed on 17 November 2017)Masumi Hamahira (appointed on 17 November 2017)

Issues of Shares and Debentures

The Company is incorporated as a company limited by guarantee and does not have share capital.

PG28


FINANCIAL STATEMENT


Directors’ Reportfor the Financial Year Ended 31 December 2017 (continued)

Directors’ Benefits

At the end of the financial period, no Directors has received or become entitled to receive a benefit (other than the benefits shown under Directors’ Remuneration) by reason of a contract made by the Company.

Neither during nor at the end of the financial period was the Company a party to any arrangements whose object was to enable the Directors to acquire benefits by means of the acquisition of shares in, or debentures of, the Company or any other body corporate.

Directors’ Interests in Shares and Debentures

According to the Register of Directors’ Shareholdings required to be kept under Section 59 of the Companies Act, 2016, none of the Directors who held office at the end of the financial period held any shares or debentures in the Company during the financial period since the date of incorporation.

Directors’ Remuneration

RMDirectors’ other emoluments 12,450 ===========

Other Statutory Information

(a) Before the financial statements of the Company were prepared, the Directors took reasonable steps:

(i) to ascertain that proper action had been taken in relation to the writing off of bad debts and the making of provision for doubtful debts and satisfied themselves that all known bad debts had been written off and that adequate provision had been made for doubtful debts; and

(ii) to ensure that any current assets, which were unlikely to be realised in the ordinary course of business including the values of current assets as shown in the accounting records of the Company had been written down to an amount which the current assets might be expected so to realise.



FINANCIAL STATEMENT


PG29

Other Statutory Information (continued)

(b) At the date of this report, the Directors are not aware of any circumstances:

(i) which would render the amounts written off for bad debts or the amount of the provision for doubtful debts inadequate to any substantial extent; or

(ii) which would render the values attributed to current assets in the financial statements of the Company misleading; or

(iii) which have arisen which would render adherence to the existing method of valuation of assets or liabilities of the Company misleading or inappropriate.

(c) At the date of this report:

(i) there are no charges on the assets of the Company which have arisen since the end of the financial period which secures the liabilities of any other person; and

(ii) there are no contingent liabilities in the Company which have arisen since the end of the financial period.

(d) No contingent or other liability of any company has become enforceable or is likely to become enforceable within the period of twelve months after the end of the financial period which, in the opinion of the Directors, will or may affect the abil ity of the Company to meet its obligations when they fall due.

(e) At the date of this report, the Directors are not aware of any circumstances not otherwise dealt with in this report or the financial statements of the Company which would render any amount stated in the respective financial statements misleading.

(f) In the opinion of the Directors:

(i) the results of the operations of the Company during the financial period were not substantially affected by any item, transaction or event of a material and unusual nature; and

(ii) there has not arisen in the interval between the end of the financial period and the date of this report any item, transaction or event of a material and unusual nature likely to affect substantially the results of the operations of the Company for the financial period in which this report is

FINANCIAL STATEMENT

PG30




Auditors’ Remuneration

Details of auditors’ remuneration are set out in Note 14 to the financial statements.

Auditors

The auditors, PricewaterhouseCoopers PLT (LLP0014401-LCA & AF 1146), have expressed their willingness to accept re-appointment as auditors.

PricewaterhouseCoopers PLT (LLP0014401-LCA & AF 1146) was registered on 2 January 2018 and with effect from that date, PricewaterhouseCoopers (AF 1146), a conventional partnership was converted to a limited liability partnership.

This report was approved by the Board of Directors on 19 June 2018. Signed on behalf of the Board of Directors:

DATO’ BADLISYAH BIN ABDUL GHANI WAN AHMAD NAJIB BIN WAN AHMAD LUTFIDIRECTOR DIRECTOR

Kuala Lumpur19 June 2018

FINANCIAL STATEMENT


PG31

Note 2017 2016 RM RM

Non-current Assets

Property and equipment 2 66,306 87,972Intangible assets 3 30,500 13,997 96,806 101,969

Current Assets

Cash and cash equivalents 8 34,503 648,259Membership fee receivable 5 75,815 35,020Other receivables, deposits and prepayments 4 81,180 119,931 191,498 803,210

Less: Current Liabilities

Other payables and accruals 6 350,468 328,128Membership fee received in advance 7 500 150Provision for taxation 10 84 112,290 351,052 440,568

Net current (liabilities)/assets (159,554) 362,642

Net (liabilities)/assets (62,748) 464,611

Represented by: Accumulated funds (62,748) 464,611


Statement of Financial Positionas at 31 December 2017

FINANCIAL STATEMENT

PG32



Statement of Comprehensive Incomefor the Financial Year Ended 31 December 2017

Financial period from 17.6.2015 Financial (date of year ended incorporation) Note 31.12.2017 to 31.12.2016 RM RM

Revenue 11 88,370 95,390

Cost of goods sold - (372)

Other income 9 770,659 1,989,852

Staff costs 12 (819,216) (791,027)Administrative and general expenses 13 (148,683) (138,401)Other operating expenses 14 (418,405) (578,541)

Total expenses (1,386,304) (1,507,969) Surplus before taxation (527,275) 576,901

Taxation 10 (84) (112,290) Net (deficit)/surplus for the financial year/period (527,359) 464,611

FINANCIAL STATEMENT


PG33

Total RM

2017

As at 1 January 2017 464,611Net deficit for the financial year (527,359) At 31 December 2017 (62,748)

2016

As at date of incorporation -Net surplus for the financial period 464,611 At 31 December 2016 464,611


Statement of Changes in Accumulated Fundsfor the Financial Year Ended 31 December 2017

FINANCIAL STATEMENT

PG34



Statement of Cash Flowfor the Financial Year Ended 31 December 2017

Financial period from 17.6.2015 Financial (date of year ended incorporation) Note 31.12.2017 to 31.12.2016 RM RM

Cash Flows from Operating Activities

(Deficit)/ surplus before taxation (527,275) 576,901

Adjustment for: Depreciation of property and equipment 25,297 24,570 Amortisation of intangible asset 4,209 482 Hibah from Wadiah account (733) (685) Operating (loss)/profit before changes in working capital (498,502) 601,268

Cash Flows from Operating Activities

Increase in membership fee receivable (40,795) (35,020) Increase/(decrease) in other receivables, deposits and prepayments 38,751 (119,931) Increase in membership fee received in advance 350 150 Increase in payable and accruals 22,340 328,128

Income tax paid (112,290) - Net cash flows (utilised)/ generated from operating activities (590,146) 774,595

Cash Flows from Investing Activities

Purchase of plant and equipment (3,631) (112,542)Purchase of intangible asset (20,712) (14,479)Hibah from Wadiah account 733 685 Net cash utilised in investing activities (23,610) (126,336)

Net (decrease)/ increase in cash and cash equivalents (613,756) 648,259Cash and cash equivalents as at 1 January/ date of incorporation 648,259 - Cash and cash equivalents as at 31 December 34,503 648,259

FINANCIAL STATEMENT


PG35

Unless otherwise stated, the following significant accounting policies have been used consistently in dealing with items that are considered material in relation to the financial statements.

A. Basis of Preparation

The financial statements of the Company have been prepared in accordance with the Malaysian Financial Reporting Standards (“MFRS”), International Financial Reporting Standards and comply with the requirements of the Companies Act, 2016 in Malaysia.

The financial statements of the Company have been prepared under the historical cost convention, unless otherwise indicated in this summary of significant accounting policies.

The preparation of financial statements in conformity with MFRS requires the use of certain critical accounting estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of income and expenses during the reported period. It also requires Directors to exercise their judgement in the process of applying Company’s accounting policies. Although these estimates and judgement are based on the Directors’ best knowledge of current events and actions, actual results may differ. There are no critical accounting estimates and assumptions used that are significant to the financial statements.

As at 31 December 2017, the Company has net current liabilities of RM159,554 and recorded a net deficit after taxation of RM527,359 for the current financial year.

In January 2018, the Company has received project funding of RM3 million for the chartered programme development, which is sufficient to cover their expenses at least until the next financial year.

In view of the aforementioned, the Directors consider that it is appropriate to prepare the financial statements on a going concern basis, and accordingly, the financial statements do not include any adjustments relating to the recoverability and classification of the recorded assets amounts, or to the amounts and classification of liabilities that may be necessary if the Company is unable to continue as a going concern.

(a) Standards, amendments to published standards and interpretations to existing standards that are applicable to the Company but not yet effective

The Company will apply these standards, amendments to published standards from:

(i) Financial year beginning on/after 1 January 2018

• MFRS 9 ‘Financial Instruments’ will replace MFRS 139 ‘Financial Instruments: Recognition and Measurement’.


Summary of Accounting Policiesfor the Financial Year Ended 31 December 2017

FINANCIAL STATEMENT

PG36


A. Basis of Preparation (continued)

(a) Standards, amendments to published standards and interpretations to existing standards that are applicable to the company but not yet effective (continued)

(ii) Financial year beginning on/after 1 January 2018

• MFRS 9 retains but simplifies the mixed measurement model in MFRS 139 and establishes three primary measurement categories for financial assets: amortised cost, fair value through profit or loss and fair value through other comprehensive income (“OCI”). The basis of classification depends on the entity’s business model and the contractual cash flow characteristics of the financial asset. Investments in equity instruments are always measured at fair value through profit or loss with a irrevocable option at inception to present changes in fair value in OCI (provided the instrument is not held for trading). A debt instrument is measured at amortised cost only if the entity is holding it to collect contractual cash flows and the cash flows represent principal and profit.

For liabilities, the standard retains most of the MFRS 139 requirements. These include amortised cost accounting for most financial liabilities, with bifurcation of embedded derivatives. The main change is that, in cases where the fair value option is taken for financial liabilities, the part of a fair value change due to an entity’s own credit risk is recorded in other comprehensive income rather than the statement of income, unless this creates an accounting mismatch.

MFRS 9 introduces expected credit losses model on impairment for all financial assets that replaces the incurred loss impairment model used in MFRS 139. The expected credit losses model is forward-looking and eliminates the need for a trigger event to have occurred before credit losses are recognised.

• MFRS 15 ‘Revenue from contracts with customers’ replaces MFRS 118 ‘Revenue’ and MFRS 111 ‘Construction contracts’ and related interpretations. The core principle in MFRS 15 is that an entity recognises revenue to depict the transfer of promised goods or services to the customer in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services

The initial application of above accounting standards, amendments and interpretation are not expected to have any material financial impacts to the current and prior year’s financial statements of the Company upon their first adoption, other than MFRS 9.

The Company is currently assessing the financial impact that may arise from the adoption of MFRS 9.


Significant Accounting Policiesfor the Financial Year Ended 31 December 2017 (continued)

FINANCIAL STATEMENT


PG37



B. Property, Plant and Equipment

Property and office equipment are stated at cost less accumulated depreciation and impairment losses. Depreciation is calculated on a straight line basis so as to write off the cost of property and equipment over their estimated useful lives. The principal annual rates of depreciation used are as follows:

Office equipment 20% Furniture and fittings 20% Computers 33% Renovations 20%

At each date of the statement of financial position, the Company assesses whether there is any indication of impairment. If such indication exists, an analysis is performed to assess whether the carrying amount of the asset is fully recoverable. A write down is made if the carrying amount exceeds the recoverable amount.

Gains and losses on disposal are determined by comparing proceeds with the carrying amount and are charged / credited to income statement.

C. Intangible Assets

Separately acquired licences, patents and trademarks are shown at historical cost. Trademarks and licences acquired in a business combination are recognised at fair value at the acquisition date. Licences, patents and trademarks have a finite useful life and are carried at cost less accumulated amortisation and accumulated losses. Amortisation is calculated using the straight-line method to allocate the cost of licences, patents and trademarks over their estimated useful lives of 10 years.

D. Impairment of Non-Financial Assets

Assets that have an indefinite useful life, for example goodwill or intangible assets not ready to use, are not subject to amortisation and are tested annually for impairment. Assets that are subject to amortisation are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. An impairment loss is recognised for the amount by which the carrying amount of the asset exceeds its recoverable amount. The recoverable amount is the higher of an asset’s fair value less costs of disposal and value in use. For the purposes of assessing impairment, assets are grouped at the lowest levels for which there are separately identifiable cash flows which are largely independent of the cash inflows from other assets or groups of assets (cash-generating units). Non-financial assets other than goodwill that suffered an impairment are reviewed for possible reversal of the impairment at each reporting date.

FINANCIAL STATEMENT

PG38




E. Financial Asset

(a) Classification

The Company classifies its financial assets in financing and receivables. The classification depends on the purpose for which the financial assets were acquired.

Financing and receivables

Financing and receivables are non-derivative financial assets with fixed or determinable payments that are not quoted in an active market. If collection of the amounts is expected in one year or less they are classified as current assets. If not, they are presented as non-current assets. The Company’s financing and receivables comprise ‘membership fee receivables’, ‘other receivables, deposits and prepayments’ and ‘cash and cash equivalents’ in the statement of financial position. (b) Recognition and initial measurement

Financial assets are initially recognised at fair value plus transaction costs that are directly attributable to the acquisition of the financial asset for all financial assets not carried at fair value through profit or loss.

(c) Subsequent measurement – Impairment

Assets carried at amortised cost

The Company assesses at the end of the reporting period whether there is objective evidence that a financial asset or group of financial assets is impaired. A financial asset or a group of financial assets is impaired and impairment losses are incurred only if there is objective evidence of impairment as a result of one or more events that occurred after the initial recognition of the asset (a ‘loss event’) and that loss event (or events) has an impact on the estimated future cash flows of the financial asset or group of financial assets that can be reliably estimated.

Evidence of impairment may include indications that the debtors or a group of debtors is experiencing significant financial difficulty, default or delinquency in profit or principal payments, the probability that they will enter bankruptcy or other financial reorganisation, and where observable data indicate that there is a measurable decrease in the estimated future cash flows, such as changes in arrears or economic conditions that correlate with defaults.

The amount of the loss is measured as the difference between the asset’s carrying amount and the present value of estimated future cash flows (excluding future credit losses that have not been incurred) discounted at the financial asset’s original effective profit rate. The carrying amount of the asset is reduced and the amount of the loss is recognised in profit or loss.

FINANCIAL STATEMENT


PG39



E. Financial Asset (continued)

(c) Subsequent measurement – Impairment (continued)

Assets carried at amortised cost (continued)

If, in a subsequent period, the amount of the impairment loss decreases and the decrease can be related objectively to an event occurring after the impairment was recognised (such as an improvement in the debtor’s credit rating), the reversal of the previously recognised impairment loss is recognised in profit or loss.

When an asset is uncollectible, it is written off against the related allowance account. Such assets are written off after all the necessary procedures have been completed and the amount of the loss has been determined. (d) De-recognition

Financial assets are de-recognised when the rights to receive cash flows from the investments have expired or have been transferred and the Company has transferred substantially all risks and rewards of ownership.

Receivables that are factored out to banks and other financial institutions with recourse to the Company are not derecognised until the recourse period has expired and the risks and rewards of the receivables have been fully transferred. The corresponding cash received from the financial institutions is recorded as financing.

When available-for-sale financial assets are sold, the accumulated fair value adjustments recognised in other comprehensive income are reclassified to profit or loss.

F. Receivables

Receivables are stated at their anticipated realisable value. Known bad debts are written off and specific allowance is made for any debts considered to be doubtful of collection.

G. Cash and Cash Equivalents

For the purpose of cash flow statements, cash and cash equivalents comprise cash on hand, deposits held at call with banks and short term, highly liquid investments that are readily convertible into known amounts of cash and which are subject to an insignificant risk of changes in value.

H. Other Liabilities

Other liabilities are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Other liabilities are classified as current liabilities if payment is due within one year or less (or in the normal operating cycle of the business longer). If not, they are presented as non-current liabilities.

Other liabilities are recognized initially at fair value and subsequently measured at amortised cost using the effective profit method.

FINANCIAL STATEMENT

PG40




I. Employee Benefits Short term benefits

Wages, salaries and sick leave, bonuses and non-monetary benefits are accrued in the financial year in which the associated services are rendered by employees of the Company.

Post employment benefit

The Company contributes to the national defined contribution plan for the employees of the Company. Contribution to this plan is charged to the income statement in the financial year to which they relate. Once the contribution has been paid, the Company has no further payment obligations.

J. Income from Membership Fees

Income from membership fees is recognised on an accrual basis.

K. Recognition of Profit Income and Hibah

Income and hibah are recognised on deposits placements and current accounts using the effective profit method on an accrual basis.

FINANCIAL STATEMENT


PG41


Notes to the Financial Statementsfor the Financial Year Ended 31 December 2017

1. General Information

The Company is incorporated and domiciled in Malaysia as a company limited by guarantee, without share capital. The Company was incorporated on 17 June 2015.

The objects of the Company are to develop, establish and issue, or collaborate in standards for Islamic finance development with respect to academic or professional qualifications by Islamic finance institutions and related matters. The Company also serves as common platform for Islamic finance professionals to express their concerns in the fields of Islamic finance.

The address of the registered office of the Company is Suite 13.03, 13th Floor, Menara Tan & Tan, 207 Jalan Tun Razak, 50400 Kuala Lumpur. The address of principal place of business of the Company is 19th Floor, Menara Takaful Malaysia, Jalan Sultan Sulaiman, 50000 Kuala Lumpur.

2. Property & Equipment

Office Furniture equipment and fittings Computers Renovations Total RM RM RM RM RM

2017

Cost

As at 1 January 2017 16,978 38,052 15,869 41,643 112,542Additions 2,399 1,232 - - 3,631 At 31 December 2017 19,377 39,284 15,869 41,643 116,173

Accumulated depreciation

As at 1 January 2017 3,395 7,610 5,237 8,328 24,570Charge for the financial year 3,875 7,857 5,237 8,328 25,297 At 31 December 2017 7,270 15,467 10,474 16,656 49,867

Net book value

At 31 December 2017 12,107 23,817 5,395 24,987 66,306

FINANCIAL STATEMENT

PG42



Notes to the Financial Statementsfor the Financial Year Ended 31 December 2017

2. Property & Equipment (continued)

Office Furniture equipment and fittings Computers Renovations Total RM RM RM RM RM

2016

Cost

As at date of incorporation - - - - -Additions 16,978 38,052 15,869 41,643 112,542 At 31 December 2016 16,978 38,052 15,869 41,643 112,542 Accumulated depreciation

As at date of incorporation - - - - -Charge for the financial period 3,395 7,610 5,237 8,328 24,570 At 31 December 2016 3,395 7,610 5,237 8,328 24,570

Net book value

At 31 December 2016 13,583 30,442 10,632 33,315 87,972

3. Intangible Assets Trademark RM2017

CostAs at 1 January 2017 14,479Additions 20,712 At 31 December 2017 35,191 Accumulated amortisationAs at 1 January 2017 482Charge for the financial year 4,209 At 31 December 2017 4,691 Net book valueAt 31 December 2017 30,500

FINANCIAL STATEMENT


PG43


Notes to the Financial Statementsfor the Financial Year Ended 31 December 2017 (continued)

3. Intangible Assets (continued) Trademark RM

2016

Cost As at date of incorporation - Additions 14,479 At 31 December 2016 14,479

Accumulated amortisation As at date of incorporation - Charge for the financial period 482 At 31 December 2016 482

Net book value

At 31 December 2016 13,997

4. Other Receivables, Deposits and Prepayments

2017 2016 RM RM

Other receivables 44,081 45,311 Deposits 16,154 25,904 Prepayments 20,945 48,716 81,180 119,931

5. Membership Fees Receivable

2017 2016 RM RM

Membership fees 75,815 35,020

FINANCIAL STATEMENT

PG44




6. Other Payables and Accruals

2017 2016 RM RM

Other payables 245,525 246,665 Accruals 104,943 81,463 350,468 328,128

7. Membership Fee Received in Advance

2017 2016 RM RM

Membership fee 500 150

8. Cash and Cash Equivalents

2017 2016 RM RM

Cash in hand 639 117 Cash at bank 33,864 648,142 34,503 648,259

9. OTHER INCOME

Financial period from 17.6.2015 Financial ` (date of year ended incorporation) 31.12.2017 to 31.12.2016 RM RM

Fund from IBFIM 627,756 1,968,795 Gain on foreign exchange 31 - Hibah from Wadiah account 733 685 Donation 34,101 20,000 Sundry income 16,167 372 Staff Training Fund (STF-i) 91,871 - 770,659 1,989,852

FINANCIAL STATEMENT


PG45



10. Taxation

Financial period from 17.6.2015 Financial (date of year ended incorporation) 31.12.2017 to 31.12.2016 RM RM Income tax - current year tax 84 112,290

The numerical reconciliation between surplus before taxation multiplied by the Malaysian statutory tax rate and tax expense of the Company is as follows:

Financial period from 17.6.2015 Financial (date of year ended incorporation) 31.12.2017 to 31.12.2016 RM RM

(Deficit) / Surplus before taxation (527,275) 576,901 Tax calculated for the first RM1,000,000 at the scaled Malaysian tax rate of 1 – 28% (5,324) - Tax calculated for the first RM400,000 at the scaled Malaysian tax rate of 1 – 24.5% - 84,650 Tax calculated for the remaining balance at the Malaysian tax rate of 25% - 44,225 (5,324) 128,875

Tax effects of: Expenses not deductible for tax purposes 1,304 9,256 Income not subject to tax (1,014) (23,628) Difference due to the use of scaled tax rates 5,118 (2,213) Taxation 84 112,290

The Company was established for the purpose of setting professional standards to support the development of talents in the Islamic finance industry and not for commercial purposes. The activities carried out by the Company are solely for the pursuit of the interest of the members of the Company. Income arising from such activities for members is not subject to tax pursuant to Public Ruling 1/2015 – Club, Association or Similar Institution. All other income not related to members’ activities are subject to tax at a scaled rate of 1% to 28% (2016: 1% to 25%).

FINANCIAL STATEMENT

PG46




11. Revenue


Membership fee 79,550 61,450 Processing fee 8,820 33,060 Merchandise items - 880 88,370 95,390

12. Staff Costs


Salary 691,891 672,130 SOCSO contribution 5,528 4,711 EPF contribution 85,066 82,399 Other employee benefits 36,731 31,787 819,216 791,027

13. Administrative and General Expenses

Financial period from 17.6.2015 Financial (date of year ended incorporation) 31.12.2017 to 31.12.2016 RM RM Accounting fee 9,328 9,500 Administration fees 6,360 8,586 Electricity charges 2,474 2,202 Takaful 54,730 36,415 Secretarial fee 6,360 8,230 Telephone charges 5,074 5,474 Rental 45,837 42,018 Website expenses 8,520 25,976 148,683 138,401

FINANCIAL STATEMENT


PG47



14. Other Operating Expenses Financial period from 17.6.2015 Financial (date of year ended incorporation) 31.12.2017 to 31.12.2016 RM RM

Advertisement, event and promotional expenses 175,770 186,811 Amortisation 4,209 482 Bank charges 166 70 Depreciation 25,297 24,570 Donation, gift and sponsorship 16,374 58,231 Entertainment 1,386 1,856 Fine and penalty - 150 Filing fee 500 - License fee 200 - Loss on foreign currency exchange - 5 Merchant transaction fee 512 356 Newspaper and periodical 873 1,705 Printing and stationery 19,119 14,424 Postage and courier charges 9,240 11,112 Petrol, parking and toll fee 12,929 13,782 Professional fee 128,345 148,584 Auditors remuneration 8,500 10,000 Stamp duty - 338 Seminar and training 2,173 4,452 Travelling and accommodation expenses 9,224 80,626 Upkeep of office 3,223 9,509 Upkeep of office equipment 365 7,428 Wages - 4,050 418,405 578,541

FINANCIAL STATEMENT

PG48




15. Financial Risk Management

The Company does not face significant exposure to financial risks except credit risk and liquidity risk.

(a) Credit risk

Credit risk is the risk of loss due to failure of counter party, members required to meet its financial obligations due to the company.

The analysis of credit risk includes only financial assets subject to credit risk. They exclude non-financial assets.

The Company has no significant concentrations of credit risk. Credit risk arises from membership fee receivables, other receivables and deposits, and cash and cash equivalents.

For financial assets recognised in the statement of financial position, the maximum exposure to credit risk equals their carrying amount as at 31 December 2017.

The Company’s maximum exposure to credit risk by class of financial asset is as follows:

2017 2016 RM RM

Cash and cash equivalents 34,503 648,259 Membership fee receivable 75,815 35,020 Other receivables, deposits and prepayments 81,180 119,931 191,498 803,210

The credit risk concentrations of the Company by industry as at the balance sheet date are set out in the following table:

Financial institutions Others RM RM As at 31 December 2017

Cash and cash equivalents 34,503 - Membership fee receivable - 75,815 Other receivables, deposits and prepayments - 81,180 34,503 156,995

FINANCIAL STATEMENT


PG49



15. Financial Risk Management (continued)

(a) Credit risk (continued)

Financial institutions Others RM RM As at 31 December 2016

Cash and cash equivalents 648,259 - Membership fee receivable - 35,020 Other receivables, deposits and prepayments - 119,931 648,259 154,951

(b) Liquidity risk

Liquidity risk is defined as the current and prospective risk to earnings, shareholders fund or the reputation arising from the Company's inability to efficiently meet its present and future (both anticipated and unanticipated) funding needs or regulatory obligation when they fall due, which may adversely affect its daily operations and incur unacceptable losses. Liquidity risk arises from mismatches in the timing of cash flows.

All financial liabilities of the Company are due within 12 months.

16. Comparative Figures

The comparatives are in respect of the financial period from 17.6.2015 (date of incorporation) to 31.12.2016 and are hence, not comparable to the current financial year’s result.

17. Authorisation for Issue of Financial Statements

The financial statements have been authorised for issue in accordance with a resolution of the Board of Directors.

FINANCIAL STATEMENT

PG50



Statement by Directors Pursuant toSection 251 (1) of The Companies Act, 2016

We, Dato’ Badlisyah and Wan Ahmad Najib, two of the Directors of the Chartered Institute of Islamic Finance Professionals, do hereby state that, in the opinion of the Directors, the accompanying financial statements set out on pages 5 to 23 are drawn up so as to give a true and fair view of the financial position of the Company as at 31 December 2017 and financial performance of the Company for the financial year ended 31 December 2017 in accordance with Malaysian Financial Reporting Standards, International Financial Reporting Standards and the requirements of the Companies Act, 2016 in Malaysia.

Signed on behalf of the Board of Directors in accordance with a resolution of the Directors dated 19 June 2018.

DATO’ BADLISYAH BIN ABDUL GHANI WAN AHMAD NAJIB BIN WAN AHMAD LUTFIDIRECTOR DIRECTOR

Kuala Lumpur

Statutory Declaration Pursuant toSection 251 (1) of The, Companies

I, Wan Ahmad Najib, the officer primarily responsible for the financial management of the Chartered Institute of Islamic Finance Professionals, do solemnly and sincerely declare that the financial statements set out on pages 5 to 23 are to the best of my knowledge and belief, correct and I make this solemn declaration conscientiously believing the same to be true, and by virtue of the provisions of the Statutory Declarations Act, 1960.

WAN AHMAD NAJIB BIN WAN AHMAD LOTFI

Subscribed and solemnly declared by the abovenamed Wan Ahmad Najib at Kuala Lumpur on 19 June 2018.

Before me:

COMMISSIONER FOR OATH

FINANCIAL STATEMENT


PG51

Independent Auditors’ Report to The Members of Chartered Institute ofIslamic Finance Professionals(Incorporated in Malaysia as a company limited by guarantee and not having share capital)(Company No. 1148700-X)

Report on The Audit of The Financial Statements

Our opinion

In our opinion, the financial statements of Chartered Institute of Islamic Finance Professionals (“the Company”) give a true and fair view of the financial position of the Company as at 31 December 2017, and of its financial performance and its cash flows for the financial year ended 31 December 2017 in accordance with Malaysian Financial Reporting Standards, International Financial Reporting Standards and the requirements of the Companies Act, 2016 in Malaysia.

What we have audited

We have audited the financial statements of the Company, which comprise the statement of financial position as at 31 December 2017, and the statement of comprehensive income, statement of changes in accumulated funds and statement of cash flows for the financial year ended 31 December 2017, and notes to the financial statements, including a summary of significant accounting policies, as set out on pages 31 to 49.

Basis for opinion

We conducted our audit in accordance with approved standards on auditing in Malaysia and International Standards on Auditing. Our responsibilities under those standards are further described in the “Auditors’ responsibilities for the audit of the financial statements” section of our report.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Emphasis of Matter

We draw attention to Note A to the summary of accounting policies, in the note to the financial statements which discloses the financial position of the Company as at 31 December 2017, and the plans currently in place to address the financial position of the Company. Our opinion is not modified in this respect.

PricewaterhouseCoopers PLT (LLP0014401-LCA & AF 1146), Chartered Accountants, Level 10, 1 Sentral, Jalan Rakyat, Kuala Lumpur Sentral, P.O. Box 10192, 50706 Kuala Lumpur, MalaysiaT: +60 (3) 2173 1188, F: +60 (3) 2173 1288, www.pwc.com/my

PricewaterhouseCoopers PLT (LLP0014401-LCA & AF 1146) was registered on 02.01.2018 and with effect from that date, PricewaterhouseCoopers (AF 1146), a conventional partnership was converted to a limited liability partnership.

FINANCIAL STATEMENT

PG52


Independent Auditors’ Report to The Members of Chartered Institute ofIslamic Finance Professionals (continued)(Incorporated in Malaysia as a company limited by guarantee and not having share capital)(Company No. 1148700-X)

Report on The Audit of The Financial Statements (continued)

Independence and other ethical responsibilities

We are independent of the Company in accordance with the By-Laws (on Professional Ethics, Conduct and Practice) of the Malaysian Institute of Accountants (“By-Laws”) and the International Ethics Standards Board for Accountants’ Code of Ethics for Professional Accountants (“IESBA Code”), and we have fulfilled our other ethical responsibilities in accordance with the By-Laws and the IESBA Code.

Information other than the financial statements and auditors’ report thereon

The Directors of the Company are responsible for the other information. The other information comprises Directors’ Report, but does not include the financial statements of the Company and our auditors’ report thereon.

Our opinion on the financial statements of the Company does not cover the other information and we do not express any form of assurance conclusion thereon.

In connection with our audit of the financial statements of the Company, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements of the Company or our knowledge obtained in the audit or otherwise appears to be materially misstated.

If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.

Responsibilities of the Directors for the financial statements

The Directors of the Company are responsible for the preparation of the financial statements of the Company that give a true and fair view in accordance with Malaysian Financial Reporting Standards, International Financial Reporting Standards and the requirements of the Companies Act, 2016 in Malaysia. The Directors are also responsible for such internal control as the Directors determine is necessary to enable the preparation of financial statements of the Company that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements of the Company, the Directors are responsible for assessing the Company’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the Directors either intend to liquidate the Company or to cease operations, or have no realistic alternative but to do so.

FINANCIAL STATEMENT


PG53



Auditors’ responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements of the Company as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditors’ report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with approved standards on auditing in Malaysia and International Standards on Auditing will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

As part of an audit in accordance with approved standards on auditing in Malaysia and International Standards on Auditing, we exercise professional judgement and maintain professional scepticism throughout the audit. We also:

(a) Identify and assess the risks of material misstatement of the financial statements of the Company, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.

(b) Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Company’s internal control.

(c) Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the Directors.

(d) Conclude on the appropriateness of the Directors’ use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Company’s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditors’ report to the related disclosures in the financial statements of the Company or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditors’ report. However, future events or conditions may cause the Company to cease to continue as a going concern.

(e) Evaluate the overall presentation, structure and content of the financial statements of the Company, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation.

FINANCIAL STATEMENT

PG54




Auditors’ responsibilities for the audit of the financial statements (continued)

We communicate with the Directors regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.

OTHER MATTERS

This report is made solely to the members of the Company, as a body, in accordance with Section 174 of the Companies Act, 2016 in Malaysia and for no other purpose. We do not assume responsibility to any other person for the content of this report.

PRICEWATERHOUSECOOPERS PLT WONG HUI CHERNLLP0014401-LCA & AF 1146 03252/05/2020 JChartered Accountants Chartered Accountant

Kuala Lumpur19 June 2018

NOTES

www.ciif-global.org

Annual Report FA - ciif-global.org · The Chartered Institute of Islamic Finance Professionals (CIIF) was established in 2015 as the professional body for Islamic ﬁnance practitioners,

Documents