Wakalah bil-Istithmar: Investment Agency (SS 46 and SS 23)
The agency rules of SS 23 and the investment agency of SS 46: mandates, fees, duties, liability and profit
Advanced · 20 hours · 42 lessons · Language: English and Arabic · ID: IFS-COU-0075
USD 25Original price USD 45
Included in the annual membership.
No expiry
Wakalah bil-istithmar, investment agency, is now one of the most used contracts in Islamic finance: in investment accounts, interbank and treasury placements, wakalah sukuk and fund management. It is governed by AAOIFI's Shari'ah Standard No. 46 (Investment Agency), which builds on the general rules of agency in Shari'ah Standard No. 23 (Agency and the Act of an Uncommissioned Agent).
This advanced course starts with the agency rules of SS 23 and then covers the investment agency contract in depth: how it differs from mudarabah, the mandate and its restrictions, the fixed fee and the incentive, the agent's duties, when the agent is liable and why it may not guarantee capital or profit, profit calculations, its use in deposits, treasury and liquidity, wakalah sukuk and asset management, accounting and disclosure, and termination, disputes and Shari'ah audit.
The course has readings, practitioner case studies with worked logs, tests and calculations, slides, study notes and practice quizzes, and a final exam of 30 scenario-based questions in 60 minutes (70% to pass).
This course is written by ifSPACE in its own words, does not reproduce AAOIFI texts, is not affiliated with AAOIFI and is not a fatwa or legal advice.
What you will learn
- Apply the general rules of agency in SS 23, including restricted mandates and the uncommissioned agent
- Explain investment agency under SS 46 and how it differs from mudarabah
- Draft and review an investment agency mandate, fee and incentive
- Judge when the agent is liable and why it may not guarantee capital or profit
- Calculate the agent's fee, incentive and the principal's profit
- Review wakalah in deposits, treasury, sukuk and funds, and audit it
Syllabus
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1.Agency in Islamic law: the rules of SS 23
- Welcome to the courseFree preview1 min
- Agency in Islamic law: the rules of SS 23Free preview30 min
- Practitioner case study30 min
- Module 1 presentation15 min
- Module 1 practice quiz15 min
2.From agency to investment agency: SS 46
- From agency to investment agency: SS 4630 min
- Practitioner case study30 min
- Module 2 presentation15 min
- Module 2 practice quiz15 min
3.The investment agency contract
- The investment agency contract30 min
- Practitioner case study30 min
- Module 3 presentation15 min
- Module 3 practice quiz15 min
4.Duties of the investment agent
- Duties of the investment agent30 min
- Practitioner case study30 min
- Module 4 presentation15 min
- Module 4 practice quiz15 min
5.Liability, guarantees and capital protection
- Liability, guarantees and capital protection30 min
- Practitioner case study30 min
- Module 5 presentation15 min
- Module 5 practice quiz15 min
6.Profit, expected profit and the incentive fee
- Profit, expected profit and the incentive fee30 min
- Practitioner case study30 min
- Module 6 presentation15 min
- Module 6 practice quiz15 min
7.Wakalah in banks' deposits, treasury and liquidity
- Wakalah in banks' deposits, treasury and liquidity30 min
- Practitioner case study30 min
- Module 7 presentation15 min
- Module 7 practice quiz15 min
8.Wakalah sukuk and asset management
- Wakalah sukuk and asset management30 min
- Practitioner case study30 min
- Module 8 presentation15 min
- Module 8 practice quiz15 min
9.Accounting, disclosure and governance
- Accounting, disclosure and governance30 min
- Practitioner case study30 min
- Module 9 presentation15 min
- Module 9 practice quiz15 min
10.Termination, disputes and Shari'ah audit of investment agency
- Termination, disputes and Shari'ah audit of investment agency30 min
- Practitioner case study30 min
- Module 10 presentation15 min
- Module 10 practice quiz15 min
- Course summary and where to go next20 min