Association of Unrestricted Investment Account Holders in Islamic Banks (as a Proposed Model for their Representation, Exercise and Protection of their Rights)

Abstract

This study aims to present a proposal to solve the problem of the absence of an independent natural representative for the holders of unrestricted investment accounts in Islamic banks, as this absence prevents them from exercising their rights and fully protecting them, and breaks the balance between their interests and the interests of Islamic banks. In order to achieve that goal, the rights of the owners of these accounts, and the previous efforts and proposals to represent them, exercise their rights and protect them, are extrapolated and presented according to a descriptive approach. Through an analytical approach it shows the insufficiency of these efforts and proposals to meet the desired goal despite their importance. Finally, the study tried, according to the deductive method, to present a model for a proposed legal entity to represent the holders of these accounts, and to exercise and protect their rights, coupled with a draft statute. The study ended with presenting a proposal entitled: "Association of unrestricted investment account holders" coupled with a draft of its statute, after explaining the proposal’s justifications, challenges and implications. The study recommends amending the legislation in force in the countries that host Islamic banks to suit the new proposal, in preparation for its approval and implementation. It also calls on international bodies interested in issuing regulatory and guiding standards for Islamic financial institutions to adopt the proposal.