Shariah Adviser.

The Shariah Adviser

Since 1 November 2014, MIDF Amanah Asset Management had appointed MIDF Amanah Investment Bank supported by Shariah Committee of MIDF Investment comprising 4 individual members, as the Shariah adviser for its Islamic Funds. MIDF Amanah Investment Bank as the Shariah adviser also reviews and supervises an additional seven Islamic retail funds, one Islamic wholesale funds, and eleven Shariah-compliant mandated accounts by corporate clients that are managed by MIDF Amanah Asset Management. 

MIDF Amanah Investment Bank commenced operations in January 2007. It is a wholly-owned subsidiary of Malaysian Industrial Development Finance, which in turn is wholly owned by Permodalan Nasional (PNB), the national investment trust company.

Roles and Responsibilities of the Shariah Adviser

In line with the Securities Commission Guidelines, the role of the Shariah Adviser is as follows;

• To ensure that the Shariah-compliant unit trust funds are managed and administered in accordance with the Shariah principles;
• To provide expertise and guidance for the Funds in all matters relating to Shariah principles, including the Funds’ deed and prospectus, its structure and investment process, and other operational and administrative matters;
• To consult the SC who may consult the Shariah Advisory Council whenever there is any ambiguity or uncertainty as to an investment, instrument, system, procedure, and/or process;
• To scrutinise the Funds’ compliance report as provided by the compliance officer, transaction report provided by or duly approved by the trustee and any other report deemed necessary for the purpose of ensuring that the Funds’ investments are in line with the Shariah principles;
• To prepare a report for inclusion in the Funds’ interim and annual report certifying that the Funds have been managed and administered in accordance with the Shariah principles;
• To ensure that the Funds comply, with any guideline, ruling, or decision issued by the SC, with regard to Shariah matters;
• To vet and advise on the promotional materials of the Funds;
• To assist and attend any ad-hoc meeting called by the SC and/or any other relevant authority.

The Shariah Adviser is responsible for advising the fund managers and/or the Investment Committee on the selection of investment tools to be adopted, as well as on the mechanism of operations for activities of the Islamic funds/accounts, in order to ensure that the operations of the Islamic funds/accounts comply with Shariah principles at all times.

The Shariah Adviser is scheduled to meet the fund managers on a quarterly basis, where they will advise on the selection of investment tools to be adopted as well as the mechanism of operations of the Funds’ activities in order to ensure that the operations of the Funds comply with Shariah principles at all times.

The Shariah Adviser will review the Funds’ investments on a monthly basis to ensure compliance with Shariah requirements at all times and meet with the fund managers on a quarterly basis to review and advise on the Funds’ compliance with Shariah requirements. The final responsibility for ensuring Shariah compliance of the Funds in all relevant aspects rests solely with the Manager. All the members of the Shariah Committee will be responsible for Shariah matters of the funds.