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  • Shari'a Advisory/Review Services

    • AU-1.2.12

      Shari'a advisory/review services refer to:

      (a) Regular assessment on Shari'a compliance in the activities and operations of Islamic financial institutions or any financial institution offering regulated Islamic financial services, by those qualified to offer Shari'a review services, with the objective of ensuring that the activities and operations carried out by these financial institutions do not contravene the Shari'a principles. The services include the examination and evaluation of the financial institutions' level of compliance to the Shari'a, remedial rectification measures to resolve non-compliance and control mechanism to avoid recurrences. The examination includes contracts, agreements, policies, products, transactions, memorandum and articles of association, financial statements and reports;
      (b) Issuance of Shari'a pronouncements on any aspect of the Islamic financial institution's activities or operations; and
      (c) Ad-hoc Shari'a advisory services for products and services governed by financial services.
      April 2016

    • AU-1.2.13

      In offering Shari'a advisory/review services, the licensee must not offer services to the same client where this may lead to a conflict of interest in terms of services offered. As an example, if the licensee has offered services under Subparagraph AU-1.2.12(b), no service can be offered under Subparagraph AU-1.2.12(a) in relation to the pronouncement.

      April 2016