IFR 6.2.1

Past version: effective from 11/07/2010 - 20/08/2014
To view other versions open the versions tab on the right

(1) A Fund Manager of a Domestic Fund other than an Exempt Fund must, subject to (3), appoint a Shari'a Supervisory Board to its Fund that meets the following requirements:
(a) the Shari'a Supervisory Board has at least three members;
(b) the members appointed to the Shari'a Supervisory Board are competent to perform their functions as Shari'a Supervisory Board members of the Fund;
(c) any appointments, dismissals or changes in respect of members of the Shari'a Supervisory Board are approved by the Governing Body of the Fund Manager; and
(d) no member of the Shari'a Supervisory Board is a director or Controller of the Fund or its Fund Manager.
(2) A Fund Manager may comply with the requirement in (1) by appointing to the Fund the same Shari'a Supervisory Board as it has appointed to the firm in accordance with IFR Rule 3.5.1, provided the requirements in (1) are also met.
(3) A Fund Manager is not required to comply with the requirement in (1) where it relies, for the purposes of making investments for the Fund, on a widely accepted Shari'a screening process such as investing in securities included in, or recognised by reference to, an Islamic index, sukuk, or treasury instruments issued by a Shari'a compliant financial services provider regulated by a Financial Services Regulator.
Derived from DFSA RM69/2010 (Made 1st March 2010). [VER1/03-10]
[Amended] DFSA RM72/2010 (Made 11th July 2010). [VER2/07-10]