Back Custom print Link Text Only Rich Text Print

  • CIU-6.1 CIU-6.1 Additional Requirements

    • Application

      • CIU-6.1.1

        This Chapter applies to all retail CIUs and expert CIUs that hold themselves out to be managed in accordance with Shari'a compliant principles.

      • CIU-6.1.2

        The rules included in this Chapter are additional to other applicable rules contained in other Chapters of this Module. In applying Rule CIU-6.1.1 to overseas domiciled retail CIUs and overseas domiciled expert CIUs, the CBB may accept other specific arrangements as having equivalent effect.

    • Constitution

      • CIU-6.1.3

        All CIUs defined in Rule CIU-6.1.1 must ensure that their prospectus contains provisions describing the Shari'a compliant nature of the CIU, the process for achieving such compliance, and the names of the Shari'a Advisers appointed under Rule CIU-6.1.4.

    • Shari'a Advisers

      • CIU-6.1.4

        The operator of CIUs defined in Rule CIU-6.1.1 must appoint two or more Shari'a Advisers and ensure that:

        (a) Appointments, dismissals or other changes in respect of members of the Shari'a Advisers are approved by the governing body of the CIU (i.e. its directors or trustees, as appropriate);
        (b) The Shari'a Advisers are independent of the CIU and its operator — amongst other things, no Shari'a Adviser should be a director, trustee or controller of the CIU or its operator;
        (c) The Shari'a Advisers selected are suitably qualified and experienced for their role; and
        (d) The Shari'a Advisers are given sufficient resources and access to information and personnel in order to undertake effectively their role as Shari'a Advisers to the CIU.

    • Shari'a Compliance

      • CIU-6.1.5

        CIUs defined in Rule CIU-6.1.1 must comply with all applicable standards issued by the Accounting and Auditing Organisation for Islamic Financial Institutions (AAOIFI).

    • Compliance Monitoring and Reporting

      • CIU-6.1.6

        The operator of CIUs defined in Rule CIU-6.1.1 must ensure that the operations and investments of the CIU are subject to compliance reporting and monitoring by its Shari'a Advisers, in accordance with applicable AAOIFI standards.

      • CIU-6.1.7

        The annual report to CIU participants must contain a report and opinion from the CIU's Shari'a Advisers:

        (a) Explaining the work undertaken by the Shari'a Advisers to verify compliance by the CIU with the Shari'a; and
        (b) Giving an opinion on the extent of the CIU's compliance with the Shari'a.

      • CIU-6.1.8

        CIUs defined in Rule CIU-6.1.1 must report without delay to the CBB changes to their Shari'a Advisers, together with an explanation for the change. All such changes must be reflected in an update to the CIU's prospectus (and simplified prospectus where applicable).