Entire Section

  • IFR 3.8 IFR 3.8 Additional Conduct Requirements

    • IFR 3.8 Guidance

      The COB module contains conduct of business requirements that apply to Authorised Firms conducting Financial Services. The AMI module contains additional conduct standards that apply to Authorised Market Institutions. Set out below are additional conduct requirements that apply to an Authorised Person carrying out any Financial Service in accordance with Shari'a.

      Derived from DFSA RM69/2010 (Made 1st March 2010). [VER1/03-10]

    • Disclosure Relating to Shari'a Supervisory Board

      • IFR 3.8.1 IFR 3.8.1

        (1) An Authorised Firm, subject to (2), must disclose to each Client:
        (a) at the outset of the relationship and thereafter at any time on request, details of the members of the Authorised Firm's Shari'a Supervisory Board; and
        (b) at any time on request, details of the manner and frequency of Shari'a reviews.
        (2) An Authorised Firm does not have to make the disclosure required under (1) if it is a Fund Manager of a Fund and is making an Offer of Units of that Fund in accordance with the disclosure requirements in the Collective Investment Law 2010, the CIR module and this module.
        (3) An Authorised Market Institution must disclose the following information to each Person granted access to its facilities at the outset of the relationship, and thereafter whenever the information changes:
        (a) the members of the Authorised Market Institution's Shari'a Supervisory Board; and
        (b) if the Person granted access to its facilities requests, the manner and frequency of Shari'a reviews.
        Derived from DFSA RM69/2010 (Made 1st March 2010). [VER1/03-10]
        [Amended] DFSA RM72/2010 (Made 11th July 2010). [VER2/07-10]

        • IFR 3.8.1 Guidance

          1. An Authorised Firm may make the initial disclosures required under IFR Rule 3.8.1(a) by including such information in the Client Agreement provided under COB chapter 3.
          2. An Authorised Firm Managing a PSIA may make additional disclosure required to be made relating to PSIA by including such information in the Client Agreement. See IFR chapter 5 for additional disclosure for PSIAs.
          3. A Fund Manager making an Offer of a Unit of a Fund it manages is required under Rules CIR 14.3.1(b) and CIR 14.3.2(b) to include information specified in IFR Rule 3.8.1(1) in the Prospectus which it must prepare and make available to Clients, hence the exemption in IFR Rule 3.8.1(2). A similar exemption is available to Fund Managers with regard to key information that must be provided to a Client under COB Rule 3.3.1(e).
          Derived from DFSA RM69/2010 (Made 1st March 2010). [VER1/03-10]
          [Amended] DFSA RM72/2010 (Made 11th July 2010). [VER2/07-10]

    • Marketing Material

      • IFR 3.8.2 IFR 3.8.2

        In addition to information required by COB 3.2, any marketing material communicated by an Authorised Firm to a Person must state which Shari'a Supervisory Board has reviewed the products or services to which the material relates.

        Derived from DFSA RM69/2010 (Made 1st March 2010). [VER1/03-10]

    • Islamic Window

      • IFR 3.8.3 IFR 3.8.3

        (1) An Authorised Firm which operates an Islamic Window must, subject to (3), disclose to its Clients whether or not it commingles funds attributable to its Islamic Financial Business with funds attributable to conventional financial business.
        (2) An Authorised Market Institution which operates an Islamic Window must disclose to any Person granted access to its facilities whether or not it commingles funds attributable to its Islamic Financial Business with funds attributable to conventional financial business.
        (3) An Authorised Firm does not have to make the disclosure required under (1) if it is a Fund Manager of an Islamic Fund and is making an Offer of Units of that Fund in accordance with the disclosure requirements in the Collective Investment Law 2010, the CIR module and this module.
        Derived from DFSA RM69/2010 (Made 1st March 2010). [VER1/03-10]
        [Amended] DFSA RM72/2010 (Made 11th July 2010). [VER2/07-10]
        [Amended] DFSA RM106/2012 (Made 23rd December 2012). [VER6/12-12]
        [Amended] DFSA RMI249/2019 (Made 18th December 2019). [VER14/12-19]

        • IFR 3.8.3 Guidance

          1. See Guidance 3 for the type of information required to be included in a Prospectus. The disclosures required under Rule 3.8.3(1) and (2) should initially be made in writing at the beginning of the relationship with a Client or with a person granted access to an Authorised Market Institution's facilities. Additional disclosure should also be made if the Authorised Firm changes its policy relating to commingling of funds attributable to its Islamic Financial Business with funds attributable to conventional financial business.
          2. The requirements in Rule 3.8.3 will also apply to an Authorised Firm that uses a Fund Platform and has both Islamic and conventional Funds on the Fund Platform.
          [Added] DFSA RM72/2010 (Made 11th July 2010). [VER2/07-10]
          [Amended] DFSA RM106/2012 (Made 23rd December 2012). [VER6/12-12]
          [Amended] DFSA RMI249/2019 (Made 18th December 2019). [VER14/12-19]

    • Disclosure Relating to Client Money Provisions

      • IFR 3.8.4

        An Authorised Firm must disclose to its Clients details about how any Client Money arising out of Islamic Financial Business is or will be held.

        Derived from DFSA RM69/2010 (Made 1st March 2010). [VER1/03-10]