IFR 5.4.3

Past version: effective from 01/03/2010 - 22/12/2012
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(1) In addition to Rules in IFR 5.2.4, an Authorised Firm Managing a PSIA must set out in a written policy how it proposes to organise and control the activities that arise from such business and ensure that its activities are conducted in accordance with Shari'a.
(2) The policy must as a minimum address, where appropriate, the following matters:
(a) how the interests of shareholders and PSIA holders are safeguarded;
(b) how the Authorised Firm will limit exposures of PSIA holders to the Authorised Firm;
(c) a description of the controls to ensure that the funds of the PSIA are invested in accordance with the investment guidelines agreed in the investment contract;
(d) the basis for allocating profits and losses to the PSIA holders;
(e) the policy for making provisions and reserves (Provisions and Reserves are set out in AAOIFI FAS 11) and, in respect of PSIAs, to whom these provisions and reserves revert in the event of a write-off or recovery;
(f) the Authorised Firm's policy on the prioritisation of investment of own funds and those of Unrestricted PSIA holders;
(g) how liquidity mismatch will be monitored;
(h) the basis for allocating expenses to PSIA holders; and
(i) how the Authorised Firm will monitor the value of its assets.
Derived from DFSA RM69/2010 (Made 1st March 2010). [VER1/03-10]