IFR 6.4 IFR 6.4 Internal Shari'a Review
IFR 6.4.1 IFR 6.4.1(1) The
Fund Managerof a Domestic Fundthat is a Public Fundmust perform an internal Shari'a review to assess the extent to which the Fundcomplies with fatwas, rulings and guidelines issued by the Fund's Shari'a Supervisory Board.(2) The Fund Managermust perform the internal Shari'a review in accordance with AAOIFI GSIFI No. 3.(3) The Fund Managerof an Umbrella Fundwhich has an Islamic Sub-Fundmust, to the extent possible, perform the internal Shari'a review in accordance with AAOIFI GSIFI No. 3 and must document the manner in which it will conduct that part of the internal Shari'a review that is not conducted in accordance with AAOIFI GSIFI No. 3.
IFR 6.4.1 Guidance1. Although the
Fund Managersof Exempt Fundsand Qualified Investor Fundsare not subject to the specific internal Shari'a requirements under section 6.4, they would need to ensure that the Exempt Fundor Qualified Investor Fundcontinues to meet the applicable Shari'a requirements. 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.2. GSIFI No. (3) (Internal Shari'a Review) establishes standards and provides guidance on the internal Shari'a review in institutions that conduct business in conformity with Shari'a. The standard covers the following:a. objectives;b. internal Shari'a Review;c. independence and objectivity;d. professional proficiency;e. scope of work;f. performance of the internal Shari'a Reviewwork;g. management of the internal Shari'a Review;h. quality assurance; andi. elements of an effective internal Shari'a Reviewcontrol system.
IFR 6.4.2 IFR 6.4.2
Fund Managermust ensure that the internal Shari'a review referred to in this section is performed by the internal audit function of the Fundor the compliance function of the Fundand that the individuals or departments involved in performing the review are competent and sufficiently independent to assess compliance with Shari'a.
IFR 6.4.2 Guidance
For the purposes of assessing competency of personnel or departments which perform the internal Shari'a review,
Fund Managershould consult AAOIFI GSIFI No. 3 paragraphs 9 to 16 inclusive.
IFR 6.4.2 [Deleted][Deleted] DFSA RM72/2010 (Made 11th July 2010). [VER2/07-10]
IFR 6.4.3 [Deleted][Deleted] DFSA RM72/2010 (Made 11th July 2010). [VER2/07-10]