Fund Manager of a Domestic Fundthat is a Public Fund must, subject to (3), appoint a Shari'a Supervisory Board to its Fund that meets the following requirements:
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.
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.
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.