In a paper discussing challenges in Islamic finance, the FSA
has revealed its discomfort with shariah scholars.
Wednesday's report from the
regulators expressed concern that these scholars may suffer
from conflicts of interest. Thanks to a scarcity of scholars,
many sit on the supervisory boards of several firms.
The FSA is particularly concerned about scholars playing too
active a role in running a company. An executive position and a
post on several supervisory boards would lead to "significant
conflicts of interests", the regulator...