(i) Although the Fund Managers of Exempt Funds and Qualified Investor Funds are not subject to the specific internal Shari'a requirements under IFR 6.4, they would need to ensure that the Exempt Fund or Qualified Investor Fund continues to meet the applicable Shari'a requirements. However, the manner in which they demonstrate to the Unitholders of the Fund how they achieve such compliance is a matter left to negotiation (i.e. subject to contractual terms) between the Unitholders and the Fund Manager.
(ii) AAOIFI GSIFI No. (3) (Internal Shari'a Review) establishes standards and provides guidance on the internal Shari'a review in institutions that conduct business in conformity with Shari'a. The standard covers the following:
(A) objectives;
(B) internal Shari'a review;
(C) independence and objectivity;
(D) professional proficiency;
(E) scope of work;
(F) performance of the internal Shari'a review work;
(G) management of the internal Shari'a review;
(H) quality assurance; and
(I) elements of an effective internal Shari'a review control system.