BC-B.4 BC-B.4 Principle 4: Information about Clients
BC-B.4.1
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Islamic bank licensee must take steps to ensure that it understands the nature and circumstances of its clients, so that it offers those products most suitable for their needs, as well as offering financing only for Shari'a-compliant projects. See Section BC-9.7.Added: July 2015BC-B.4.2
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Islamic bank licensee must ensure that its customers' businesses and the purpose of any financing provided are consistent with the Shari'a.Added: July 2015BC-B.4.3
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Islamic bank licensee must gauge the needs of their clients to ensure that the products or services rendered will reasonably meet those needs, and must ensure that any advice tocustomers is aimed at thecustomers' interests and based on adequate standards of research and analysis.Added: July 2015BC-B.4.4
Among the methods that are commonly used to gauge clients' needs are questionnaires and interviews with the clients, a written record being required. Questionnaires must be either completed or signed by the client, and where appropriate a summary of any interview must be signed by the client.
Added: July 2015BC-B.4.5
It is the responsibility of the
Islamic bank licensee to provide its customers full and timely disclosure of material facts relevant to the proposed transaction, their rights and obligations before signing any documents, to avoid any conflicts in the future.Added: July 2015BC-B.4.6
For example, if a client considering a savings or investment product, or a home purchase product, chooses not to provide all the information requested, the client must be cautioned that the
Islamic bank licensee may not be able to give suitable advice without complete information and the client might risk making payments or entering into financial commitments which may not be appropriate to his or her needs or ability to pay. In this context, the principle of due diligence also applies to any such information seeking.Added: July 2015
