This article examines the occurrence and legal implications of ‘fatwā shopping’ in the Islamic finance industry and the need to put the proper legal mechanisms in place to regulate the phenomenon. It provides a case study of the existing legal restrictions in some jurisdictions with a centralised Sharīʿah Supervisory Board at the national level such as in Malaysia. As a preliminary review of the implications of ‘fatwā shopping’ in the industry, this study examines the consequential problems, current perceptions and prospects of such practice. The study finds that instances of ‘fatwā shopping’ are common in cross-border Islamic finance transactions such as cross-border ṣukūk transactions where there is less regulation.

Purpose: The key purpose of this study is to make awareness for faithful Muslims who are interested to invest in Islamic capital markets so as to enable them making right decision while considering investment inSukukover conventional interest-bearing bonds.Design/methodology/approach: This study reviews past literature to analyse contemporarySukukrisks and discusses several mechanisms to mitigate those risks.Findings: The study shows thatSukukcan be good alternatives to conventional bonds.Sukukstructures need to be further developed to fulfil theSharīʿahcompliance requirements.Research limitations/implications: This study is exploratory in nature, and as such, it seeks to identify the risks related toSukukissuance. Given this limitation, it did not provide empirical evidences relating to any specific category ofSukukrisks.Practical implications: An in-depth knowledge ofSukukrisks would help both academicians and investors understand the potential problems related toSukukstructures and take precautions in the early stage to prevent causes of being defaulted or bankrupt.Originality/value: The risks related toSukukhave been explored in all potential roots. This study has offered some significant techniques to prevent the relevant risks for investors’ benefits. Information being provided throughout this study is expected to serve potential investors inSukukas a guide to make right decisions and enable them to minimise the risk to secure healthy returns on their investments.

Purpose – The purpose of this paper is to contribute to the existing body of work in the area of Islamic microfinance by examining the co-operative nature of Islamic financial services providers (IFSPs) in Australia. Design/methodology/approach – The method employed in this study is a mixture of one of the authors' post-graduate research and their personal experience, curiosity and association with this industry. Findings – Islamic financial cooperatives, relevant government authorities and Islamic micro-lenders in Australia should cautiously examine the following opportunities for the development of Islamic microfinance in Australia: merging of Islamic cooperatives with each other for their future growth and development through attracting more capital; integration of microfinancing Islamic investment and retail banking facilities to provide the twin engines of fulfilling communities' religious needs and Australia's economic development; and introducing more creative Islamic microfinance techniques to suit the financial needs of individuals and groups to facilitate their contribution in the country's economic development. Practical implications – The paper offers: an introduction to the emergence and development of Islamic microfinance in Australia; studies the current realities of the Islamic financial system of Australia from the perspective of Islamic microfinance contracting perspectives; explains the key role of IFSPs in Australia in fulfilling the microfinance needs of Muslim community; and examines the Islamic microfinance techniques they use. Originality/value – Examination of the issues of the study is undertaken aiming at introducing Islamic microfinance with relevant parties including government authorities and Islamic micro-lenders in Australia to find it as a viable alternative system of financing for Muslims in Australia.

Purpose: This study explores the practical application of the Shariah screening process and how it could be enhanced by converging the same with the ethical screening of stocks.Design/methodology/approach: This study adopts a qualitative research methodology by combining the qualitative descriptive approach and content analysis.Findings: The findings of this research suggest that there is scope to converge ethical screening of stocks with Shariah Screening as the lex loci applicable to Shariah screening is derived from Shariah, which considers ethics as part of determining its rules.Practical implications: The data from this study reveal several practical applications, the ultimate goal of which is to help the policymakers and stakeholders understand the relevance of the Shariah screening of stocks and get a streamlined screening process, paving the way to enhance the same using ethical screening criteria to develop its function to become much more relevant irrespective of the denomination of faiths.Originality/value: This is original research, which is expected to contribute to understanding the extent to which Shariah screening can be enhanced by integrating the ethical stock screening dimension to it.