BC-7.1.3
Banks must have a policy statement as to the policies and procedures in place to safeguard the interest of the PSIA holders. The statement must, as a minimum, cover the following areas:
(a) Basis for allocation of profit or loss to the PSIA;
(b) Policy for making provisions and reserves against assets and equity for PSIA (refer to FAS 11, issued by AAOIFI, for recognition and measurement of provisions and reserves) and to whom these provisions and reserves revert to in case of write-back or recovery;
(c) Policy on the priority for investment of own funds and those of unrestricted investment account holders; and
(d) Basis for allocating expenses to the PSIA.
Banks must agree their Policy Statements with the CBB.
Amended January 2011
October 2007
October 2007