Cooperative’s Shariah Compliant
Appointment of Shariah Manager
An Islamic Shariah Manager will be appointed to govern the activities of the Cooperative’s Shariah activities. The individual must be:
(a) a Shariah compliant officer with knowledge in Islamic banking and Islamic Funds:
(i) The person is not an undischarged bankrupt;
(ii) The person has not been convicted for any offence arising from a criminal proceeding;
(iii) The person is of good repute and character; and
(iv) The person possesses the necessary qualifications and expertise, particularly in fiqh muamalah and Islamic
jurisprudence, and has experience and/or exposure in Islamic finance; or
Role of Shariah Manager
The roles of a Shariah Manager include the following:
(a) To advise on all aspects of Islamic fund management business in accordance with Shariah principles;
(b) To provide Shariah expertise and guidance on all matters, particularly in documentation, structuring and investment instruments, and ensure compliance;
(c) To review reports of compliance officers of the Islamic investment transaction report to ensure that investment activities are Shariah compliant; and
(d) To provide a written opinion and/or periodic report to confirm and certify whether the Islamic fund management business has been managed and/or administered in accordance with Shariah principles.
In carrying out the roles above, a Shariah compliant officer (manager) must act with due care, skill and diligence
Maintenance of accounts
(a) An Shariah compliant officer (manager) should ensure that its clients’ monies and properties are properly safeguarded in accordance to Shariah requirements; and
(b) Shariah compliant officer (manager) is encouraged to maintain all accounts with Islamic financial institutions. However, it is allowed to maintain the accounts in other financial institutions provided they are maintained in accordance with Shariah principles.
To manage risk, an Islamic fund manager is permitted to undertake appropriate risk management techniques and tools for its Islamic fund management business. Such tools and techniques must be in compliance with Shariah principles and endorsed by its appointed Shariah compliant officer (manager).
Responsibilities of the Compliance Officer
In addition to complying with statutory and general requirements the compliance officer of an Islamic fund manager must ensure that the Cooperative business complies with these guidelines. The compliance officer must report any Shariah non-compliance directly to the Cooperative Board for consideration and/or immediate remedial action.
Written Disclosure And Declaration
An Islamic fund manager is expected to prepare at least, annually a written disclosure and declaration to the Cooperative that the Islamic fund management business is carried out in accordance with Shariah principles.
An Islamic fund manager must put in place appropriate systems and mechanisms within its internal audit requirements to monitor Shariah compliance according to these guidelines, relevant SC regulations and/or standards, including resolutions issued by the SAC.
Governance Structure of the Cooperative