Additional Matters to be Included in the Policy and Procedures Manual
IFR 5.2.4 IFR 5.2.4
Authorised Firm Manages a PSIA, its Islamic Financial Businesspolicy and procedures manual must address the following additional matters:(a) the basis upon which a PSIAwill be deemed restricted or unrestricted;(b) the basis for allocation of profit or loss to the PSIA;(c) the basis for allocation of expenses to the PSIA;(d) the manner in which an Authorised Firm'sown funds, funds of restricted PSIAsand funds from unrestricted PSIAsare to be controlled;(e) the manner in which the funds of each type of investment account holder will be managed;(f) the manner in which it will determine priority for investment of own funds and those of holders of unrestricted PSIAs;(g) how provisions and reserves against equity and assets are to be applied; and(h) the manner in which losses incurred as a result of the misconduct or negligence for which the Authorised Firmis responsible will be dealt with.
IFR 5.2.4 Guidance
For the purposes of IFR Rule 5.2.4, the policy and procedures manual should include procedures to ensure that the
Authorised Firmmanages the accounts of Profit Sharing Investment Accountholders in accordance with their instructions.