CBB Volume 4: Contents
Conventional and Islamic Investment Firms
Investment firm licenseesG may deal in both conventional and Islamic financial instrumentsG . Only those investment firm licenseesG whose operations are fully shari'a compliant, however, may hold themselves out to be an Islamic investment firmG .Amended: July 2007
AU-1.1.24Amended: October 2014
Amended: April 2013
Amended: October 2009
In accordance with Paragraph HC-9.2.1, Category 1 and 2 Islamic investment firmsG must maintain a Shari'a Supervisory Board, comprised of at least 3 Shari'a board members, to verify that their operations are Shari'a compliant.Added: October 2014
Category 3 Islamic investment firmsG must appoint a minimum of one Shari'a advisor or scholar to verify that their operations are Shari'a compliant.Added: October 2014
Investment firm licenseesG (whether conventional or Islamic) may not accept shari'a money placements or deposits. They may not enter into shari'a financing contracts (except where it is an incidental part of assisting a client to buy, sell, subscribe for or underwriteG a financial instrument). Finally, they may not offer Shari'a Profit Sharing Investment Accounts (whether restricted or unrestricted).Amended: October 2012
Amended: July 2007
Shari'a money placements or deposits include money taken under q'ard or al-wadia contracts. Shari'a financing contracts include contracts such as murabaha, bay muajjal, bay islam, ijara wa iktina and istisna'a. Profit sharing investment accounts include those accounts undertaken under mudaraba and musharaka contracts.
The transactions prohibited under Rule AU-1.1.25 may only be undertaken by bank licensees.