AAOIFI Shari'ah Standard No. 29

Stipulations and Ethics of Fatwa in the Institutional Framework — practice questions

ضوابط الفتوى وأخلاقياتها في إطار المؤسسات

19 questions in the bankMultiple choice

Sample questions from the AAOIFI Test question bank on Shari'ah Standard No. 29. Pick an answer to check it and read the explanation.

Sample questions

Question 1 of 3

Under Shari’ah Standard No. (29), what does the term Fatwa refer to?

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Correct answer: A. Clauses 2/1 and 2/2: Fatwa is a Shari’ah opinion presented to a person who seeks it concerning an incidence that has already occurred or is expected to occur; it does not refer to answering queries about hypothetical incidences. Istifta’ is the act of seeking such an opinion. Under Clause 3/4, the Institution must seek Fatwa on incidences that occur or are expected, and for every operation it intends to pursue.

Question 2 of 3

An Institution’s Shari’ah Supervisory Board issues a Fatwa declaring a proposed product permissible. For practical business reasons, management decides not to launch the product. What is the correct position?

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Correct answer: C. Clause 6/1: The Institution is obliged to follow the Fatwa once issued, whether or not management is satisfied, where the Fatwa entails enforcement or prohibition of an act. Where the Fatwa declares an act permissible, the Institution may refrain from following it if practical needs require, but its rejection of the board’s Fatwa should be reported to the General Assembly. Clause 8/7 confirms that declaring an act permissible is not a recommendation to perform it.

Question 3 of 3

May an Institution act on a Fatwa issued by the Shari’ah board of another institution?

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Correct answer: B. Clauses 3/5 and 6/3: Although a Fatwa seeker is generally free to choose the most appropriate source, Institutions must, under rules and regulations, seek Fatwa from their own boards, and they should not follow the Fatwas of other Shari’ah advisory boards except with the permission of their own board. Clause 7/4 separately allows the board, in coordination with the Institution, to refer an issue to a more reliable body such as a Fiqh academy or the AAOIFI Shari’ah Board.

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