IFR 6.3 IFR 6.3 External Shari'a reviews and periodic reports
Fund Managerof a Domestic Fundthat is a Public Fund, other than a Fundrelying on the exemption in IFR Rule 6.2.1(3), must ensure that all Shari'a reviews of the Fundare undertaken by the Shari'a Supervisory Boardin accordance with AAOIFI GSIFI No 2.
IFR 6.3.2 IFR 6.3.2(1) In the case of a
Domestic Fundthat is a Public Fundother than a Fundrelying on the exemptions in IFR Rule 6.2.1(3), the Fund Managermust commission an interim and an annual report relating to the Fundoperations from the Shari'a Supervisory Boardwhich complies with AAOIFI GSIFI No 1.(2) The Fund Managermust deliver a copy of the annual interim report referred to in (1) to the Unitholdersin accordance with CIR Rule 9.4.4 and must include the report of the Shari'a Supervisory Boardin the annual report required under CIR Rule 9.4.5.
IFR 6.3.2 Guidance
Fund Managersof Exempt Fundsand Qualified Investor Fundsare not subject to the Shari'a review process required under IFR section 6.3, they would need to ensure that the Exempt Fundor Qualified Investor Fundcontinues to meet the Shari'a requirements, particularly for the purposes of their annual and interim reports, which are required to be prepared under CIR section 9.4. However, the manner in which they demonstrate to the Unitholdersof the Fundhow they achieve such compliance is a matter left to negotiation (i.e. subject to contractual terms) between the Unitholdersand the Fund Manager.