Islamic financial providers remunerate Shariah scholars for their services. Isn’t there a conflict of interest here?
Just like external auditors are required to ensure that the activities of a certain institution are in line with regulations, Shariah scholars are mandated to ensure that financial activities of the institution they supervise are in accordance with the Shariah. Their decisions are also watched very closely by the market and hence their peers. This adds a further layer of comfort that the decisions of Shariah scholars are independent of the pressures of the institution they work for.
