IFR 6.5.1 IFR 6.5.1
A Fund Manager of an Islamic Fund which is a Public Fund must state in the Fund's Prospectus:(a) that all the operations in relation to the Fund will be conducted in accordance with Shari'a;(b) if the Fund has a Shari'a Supervisory Board appointed to it, the names of the members of the Shari'a Supervisory Board and their qualifications and experience and, whether or not the Fund Manager's Shari'a Supervisory Board is appointed to the Fund pursuant to IFR 6.2.1(b);(c) if the Fund does not have a Shari'a Supervisory Board appointed to it pursuant to IFR 6.2.1(c), what widely acceptable screening methodologies are used by the Fund to ensure Shari'a compliance with respect to investments made for the Fund, and the board that has approved them;(d) if applicable, the manner and frequency of Shari'a reviews;(e) how earnings prohibited by Shari'a will be disposed of; and(f) whether Zakat is the responsibility of the Fund or the responsibility of the Unitholders.
Guidance(i) A Fund Manager should consider providing additional information to support the statement under IFR 6.5.1(a) as indicated in 2 and 3 below.(ii) The Fund Manager should provide sufficient details setting out the basis upon which the Fund has been approved and certified as Shari'a compliant by its Shari'a Supervisory Board. Such details should include the basis of the underlying principles, i.e. the Fatawa or rulings, including reference to any relevant Ijtihad, Ijma, Qiyas or other. Where applicable, reference should be made to any Islamic indices to be used. In addition, where applicable, the screening process and any filters used should be identified.(iii) The Fund Manager should set out each of the key features of the Fund and explain the rationale for determining why each of these features are considered Shari'a compliant by the Fund's Shari'a Supervisory Board.