CMA LAW: Reminding Announcement Imminent expiry of the grace period for adjusting the situations of the external Sharia audit firms of Licensed Persons to operate in accordance with the provisions of Islamic Sharia

As Capital Markets Authority (the Authority) is keen on enhancing the role of regulations related to the practice of Sharia review and audit profession for Licensed Persons operating in accordance with the provisions of Islamic Sharia, and with view to applying the legislations issued in this regard, the Authority hereby reminds all external Sharia audit firms existing at the date of effecting the regulation of practicing the external Sharia review and audit profession issued on 20^th of last February, to comply with the provision of Article (10) of such regulation, which granted such firms a grace period of six months expiring on 20^th August to adjust their situations as well as adjusting the situations of their Sharia auditors prior to such deadline.

While drawing the attention of all persons concerned with such legislations to their effectiveness since issue date thereof, the Authority more specifically emphasizes that external Sharia audit firms should complete the procedures for adjusting the situations of their Sharia auditors on timely basis. This is due to the fact that such procedures are perquisite condition for granting them authorities to carry out their assignments for control over all businesses, trade and investment transactions and contracts, etc. for the persons licensed by the Authority in order to ensure that they conform to Law No (7) of 2010, the Executive Bylaw thereof, the resolutions and instructions issued by the Capital Markets Authority and review the same from Sharia perspective.