Errant Shariah advisers ‘are open to legal suits

Shariah advisers can be held accountable in court for lapses in their duty but it would be hard to make a case against them as their role involves views which differ across the industry, a top scholar has said.

Shariah advisers are gatekeepers of the $1tn Islamic finance industry, applying Islamic and banking law to decide which financial practices and products comply with Shariah.

As the industry tries to reach wider markets and more products are developed, there has been debate on the role and accountability of Shariah advisers.

Mohamed Akram Laldin, executive director of the International ShariahResearch Academy for Islamic Finance, said Shariah advisers have to answer for failures in their functions but not business decisions.

“Shariah advisers are not above the law. If they make a clear mistake in their decision, they should be accountable,” said Akram, who also advises the Malaysian central bank, which oversees the world’s largest Islamic bond market.

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