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» WVB Provides Solution to Audit Trail Problem for Financial Companies and Islamic Scholars.
A serious challenge exists at the heart of the multi trillion dollar Islamic Finance industry.
The problem is; how can the financial institutions distil the learned determinations of highly skilled Islamic Scholars to end clients and regulatory bodies and prove that they have obeyed all regulatory requirements when key items considered are not available in GAAP accounts?
World Vest Base’s in house Islamic Scholars worked closely with EIFA and followed the tenets of AAOIFI to add over 100 financial items with approved specific Islamic financial definitions that result in over 200 items/totals or ratios that are required by Islamic Scholars.
These items were added to the relational WVB Master Database, the most detailed, uniform and independent global fundamentals database available. WVB Master contains only factually reported “As Published” data on publicly listed companies. The “As Reported” product of the database enables the deepest comparison and audit of companies worldwide.
With the addition of the Islamic Finance items covering MENA and Malaysia initially, WVB Master provides the additional key information that Islamic Scholars need in order to accurately assess listed companies, whilst the depth and breadth of the GAAP information coupled with the clinical presentation of the Islamic items enables financial institutions to present a clear and simple audit trail.
Background
The problem has existed due to differing requirements on the main parties.
On the one hand are the financial and banking institutions that must obey numerous regulatory regimes and to have a clear audit trail to prove that their recommendations are demonstrably reasonable, that their products offered are in line with each client’s attitude to risk and that they follow the investment wishes of each client.
On the other are Islamic Scholars who are assessing companies to determine their adherence to Islamic principles. As there are different interpretations of the thresholds for what are Haraam and Halaal, Islamic Scholars must have skill and experience to correctly assess companies.
When WVB Master “Shari’a Plus” is used in conjunction with WVB Shari’a Compliance Rating which enables relevant universes of companies to be identified almost instantly, both Islamic Scholars and Financial Institutions can enjoy time and cost savings, secure in the knowledge that regulatory requirements have been surpassed.
For more information contact: sales@wvb.com