Scholars shouldn't develop Islamic products

Author: | Published: 28 Nov 2007

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...