Terms, conditions, and errata



Welcome to Ethica Institute of Islamic Finance™. If you continue to browse and use this website or engage in a contractual agreement with Ethica you agree to comply with and be bound by the following terms and conditions of use and the pricing and terms contained therein, which together with our privacy policy govern Ethica Institute's™ relationship with you.

This Agreement is agreed upon by Ethica Institute of Islamic Finance™ (referred to as "Ethica™") and The User (referred to as "The User"), where "The User" is defined as any individual or institution using any of the products or services provided by Ethica Institute of Islamic Finance™, ethica.institute, IslamicAdvisory.com, and/or its affiliates and associates, including and not limited to its Associate Membership, Premium Membership, Corporate License, Executive Tracks, or any other product or service we provide.

The terms "Ethica Institute of Islamic Finance™," "Ethica™," "ethica.institute," "Islamic Advisory," "IslamicAdvisory," "IslamicAdvisory.com," "Islamic Advisory Group," or "us" or "we" refers to the owners of the website whose registered name is Ethica Institute LLC with registered agent address of 651 North Broad Street, Middletown, DE 19709. The term "you" refers to The User of our website.

General Terms and Conditions

1.1. Ethica™ and The User agree to maintain Shariah compliance in all dealings, and God is our witness.

1.2. This Agreement does not grant any sort of exclusivity to either of the parties.

1.3. This Agreement is governed by the rules and regulations of the Accounting and Auditing Organization for Islamic Financial Institutions (AAOIFI) and a disagreement between the client and Ethica will be put before Ethica’s Shariah Board, an independently acting body, where this agreement automatically terminates if you fail to comply with the terms and conditions of this Agreement.

Responsibilities of The User

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2.4. All prices for certification programs, study extensions, exam retakes, and any other price quoted in relation to Ethica™ are subject to change without notice. Ethica™ is not responsible for any costs incurred in relation to marketing at the older price.

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2.7. Unauthorized use of our products or services may give rise to a claim for damages and/or be a criminal offence.

2.8. All customization of products or services provided by Ethica™ incur separate charges.

on period, where 'access' disregards any obstructions, firewalls, delays, or technical difficulties on the part of the User.


2.10. Institutional users receive one bulk delivery for multiple users’ certificates. Separate deliveries will be charged at prevailing shipping and handling rates.

2.11 All CIFE and ACIFE certification programs are non-refundable once payment is made.

2.12 Ethica is not responsible for users having technical difficulty with their device. Ethica does not recommend using a smartphone or tablet for the modules and the examination.

Exit Clause

3.1. This Agreement may be terminated by Ethica™ without prior notice at any time. If either party violates any of the terms and conditions of this Agreement, the contract may be terminated unilaterally by either party.

on expires. You acknowledge that such information and materials may contain inaccuracies or errors and we expressly exclude liability for any such inaccuracies or errors to the fullest extent permitted by law.


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4.1. While this contract is in force, no party shall (and shall ensure that their associates shall not) discuss, agree or negotiate with any third party the conduct of all or any part of the terms of this Agreement. Neither Party shall disclose in its publicity material or otherwise the terms of this Agreement or its relationship with the other party without the prior written consent of that party. All know-how, trade secrets, commercial, financial, marketing and technical information, and any other information relating to a party in any form or medium, whether or not marked as 'confidential' and whether disclosed orally or in writing before or after the date of this Agreement, together with any reproductions of such information (in whole or in part) in any form or medium, given by one party to this Agreement to the other party or otherwise obtained, developed or created by the Recipient relating to the Disclosing Party will be treated by the Recipient, its employees, agents and subcontractors as confidential and will not be used other than for the benefit of the Disclosing Party nor disclosed to third parties without the prior written consent of the Disclosing Party.

4.2. This contract sets out the entire Agreement between the parties in respect of the subject matter contained herein. It supersedes any previous agreement between them in relation to the subject matter of this Agreement.

4.3. This Agreement does not include an annual maintenance fee to cover upgrades and patches. The maintenance fee is optional and will be billed on an annual basis if you chose so. Ethica™ may provide you with support services related to its product at its sole discretion. Any supplemental code provided to you as part of the support service shall be considered part of the product and is subject to the terms of this Agreement.

4.4. If at any time any provision of this Agreement is or becomes invalid, illegal or unenforceable in any respect, that shall not in any way affect or impair the validity, legality or enforceability of any other provision of this Agreement.

4.5. No party may assign, charge or otherwise encumber, create any trust over or deal in any other manner with this Agreement or any right, benefit or interest under it, nor transfer or sub-contract any of that party's obligations under it.

4.6. Each party shall be excused from performing its obligations under this Agreement if its performance is restricted or prevented due to a matter beyond its reasonable control, a force majeure. Performance of a party's obligations under this Agreement shall only be excused to the extent of and during the continuance of such event. If such an event continues for more than 30 days either party may give written notice to the other terminating this Agreement.

4.7. The parties mutually acknowledge that in entering into this Agreement and in the course of its performance they have incurred expenses both in terms of capital outlay and day to day operational expenses for which they have been adequately compensated by the mutual benefits (financial and otherwise) which each party has derived from this Agreement. Accordingly, the parties agree that notwithstanding any rule of law, no termination of this Agreement made in accordance with its terms shall be considered by either party to be wrongful, abusive or inconvenient and neither party shall as consequence of such termination make any claim against the other for compensation for loss of any rights, loss of goodwill, loss of future profits or any similar loss. The User uses Ethica's™ products and services at his or her own risk.

4.8. Ethica and its employees, shareholders, and affiliates cannot be held responsible for any loss, cost, damage, inconvenience or expense caused resulting from this Agreement, or as a result of any inaccuracy or error contained within this Agreement, or as a result of Ethica™ ceasing to exist. To the maximum extent permitted by applicable law, we hereby disclaim all warranties, express and implied, including but not limited to implied warranties of this Agreement. We are not responsible for any errors or incorrect data that may be a result of this Agreement. To the maximum extent permitted by applicable law, in no event shall we be liable for any special, incidental, or consequential damages, (including, without limitation, damages for claims regarding privacy, incorrect data or third party claims) arising out of the use of this Agreement or for any other reason, whether foreseeable or not and regardless of the form, legal theory (including without limitation, negligence) or basis of recovery for such claim, even if we have been advised of the possibility of such damages. If The User cancels this agreement, its membership, or any part of the service, no refund shall be provided.

4.9. The User agrees that Ethica™ has made no express warranties, oral or written, to you regarding the product and that the product is provided to you 'as-is' without warranty of any kind. Ethica™ disclaims any and all other warranties, whether expressed, implied or statutory, including, but without limitation, the implied warranties of non-infringement of third party rights, merchantability, and fitness for a particular purpose.

4.10. Ethica™ makes every effort to base its content on the Shariah Standards of the Accounting and Auditing Organization for Islamic Financial Institutions. This does not imply that we are affiliated with, endorsed by, or working in collaboration with AAOIFI. We choose their standards out of an effort to promote Shariah convergence in the Islamic finance industry.

4.11. The content of the pages of ethica.institute and its related streamable and downloadable content is for your general information and use only and is subject to change without notice.

4.12. In order to receive any form of referral income, you must first register and be approved for becoming a Licensed Reseller. All referrals, referrers, and referees who are not processed in advance through our Licensed Reseller program are considered unpaid and voluntary referrals, referrers, and referees.

4.13. If you decide to become a CIFE or ACIFE, Ethica reserves the right to share your name and contact details with other graduates, prospects, and other third parties for purposes of promoting the CIFE or ACIFE program.

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4.15. By opening emails from Ethica, you permit to record and view your open and click through history on such emails. If you wish for Ethica not to record and view your open and click through history, you may unsubscribe.

4.16. All prices quoted on Ethica’s website, print material, and digital material are in United States dollars (USD) unless noted otherwise.


1. In Module ‘Understanding Ijarah (part 1), it is stated that ‘earnest money is returned to client if he starts Ijarah as per his undertaking.’ Here, by earnest money we mean “Hamish Jiddya (security deposit)” and in some old literature of Islamic finance, earnest money has been used for the meaning of Hamish Jiddiyah. However, you may replace the words earnest money with security deposit.  
2. In Module ‘Understanding Murabaha’, it is stated under the heading of ‘Usability’ that an imported car can not be purchased at sea before reaching port. Please note the following as well: In addition to this documentary evidence, constructive possession also requires that the one possessing the asset must be in a position to use the item for which it is intended. For instance, one may not claim complete constructive possession of an imported car while it is still in transit at sea and he bought the car from its importer. Only once the car reaches the port and the owner is in a position to actually claim the vehicle does he establish constructive possession. However, the importer of the car may sell the car after receiving the bill of lading because it is in its constructive possession through the shipping company.  

3. In Module, ‘Understanding Murabaha’, it is stated under ‘profit calculation’ that the period of advance against Murabaha’ cannot be considered for determining the price of Murabaha goods. In Islamic Financial institutions, profits are calculated on the basis of the period for which the institution is out of fund in all modes of Islamic finance i.e. either in case of ‘Advance against Murabaha’, ‘Advance againt Ijarah’, ‘Advance against Diminishing Musharakah’ and ‘Advance against Salam & Istisna’ etc.

4. In ACIFE Accounting, the following statements should be noted for greater clarity:
Statement: “The amount that remains on the date of the statement of financial position from the funds the bank originally receives plus profit shares less losses if any, also decreased by withdrawals or transfers to other accounts.”
Replace with: “The amount remaining, at the date of the statement of financial position, from the funds originally received by the Islamic bank from the account holders plus (minus) their share in the profits (losses) and decreased by withdrawals or transfers to other types of accounts.”
Statement: “Decrease in assets resulting from the depreciation in their value or from reciprocal or no non-reciprocal transfers during the period covered by the income statement.”
Replace with: “A loss is a net decrease in net assets which results from holding assets that depreciate in value during the period covered by the income statement or from incidental legitimate reciprocal and non-reciprocal transfers (e.g penalties by Central Bank, or involuntary conversion of assets- theft, destruction, etc), except for non-reciprocal transfers with equity holders or holders of unrestricted investment accounts or their transfers.”
Statement: “In an operating Ijarah the economic life of an asset is depreciated and in an Ijarah Muntahiya bi Tamleek the contract tenure is depreciated.”
Replace with: “The difference between an Operating Ijarah and an Ijarah Nubtahiya Bi Tamleek is that in an Operating Ijarah, after the termination of the lease period the assets return to the bank; on its part the bank looks for a new lessee. Whereas, Ijarah Muntahiya Bi Tamleek provides an option for the customer to acquire the ownership at the end of a specified period.

5. Understanding Ijarah 2 (CIFE): Self assesment quiz - The “black, fully loaded car” is a “lease based on specifications.”

6. Schedule for Redemption Schedule Of Diminishing Musharakah in ACIFE FA, under the column for Formula For Consideration Of Usufructs, place brackets around (3ML + 1%) and In the formula, only one zero should be kept after the point as in the following formula

7. Understanding Musharakah 2 (CIFE): At 10:19, the answer for question number 3 is 535.05.


The answers to all Islamic finance questions received at ethica.institute, by email, phone, fax, or by any other means, or are listed on Ethica's Q&A database, are provided for education and informational purposes only, without any express or implied warranty of any kind, including warranties of accuracy, completeness, or fitness for any particular purpose. The information contained in or provided from or through these answers is general in nature and not specific to you or anyone else and is not intended to be and does not constitute financial, legal, investment, trading or any other advice. You understand that you are using any and all information available on or through this and other answers at your own risk.


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