Islamic Fund Management
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Principle 3: Compliance with Shariah rules and principles – The ICIS’s governing body
must ensure that appropriate systems and mechanisms for monitoring ex-ante and ex-post
Shariah compliance are in place, and are effective.
Principle 4: Additional protection for ICIS investors – The ICIS’s governing body must
ensure that any movement of the ICIS’s funds or assets, to the extent that such is lawful, will be
carried out in conformity with the ICIS’s investors’ objectives and their best interests, and
always supported by appropriate and objective valuations.
Principle 5: Additional protection for ICIS investors – ICIS insiders must be transparent in
the imposition of any fees, the creation of any reserves and the smoothing of any dividend
payments.
These guiding principles aim to ensure that Islamic funds are organised and managed
efficiently through appropriate oversight, control and review mechanisms, and reduce the
risks associated with the conflict of interests between investors and fund managers.
Parties Involved in Islamic Fund Management and Their Roles
The key parties involved in the establishment of an Islamic fund and their key roles are
presented i
Figure 2.7: Parties Involved in Islamic Fund Management and Their Roles
Sources: Adapted from ISRA (2015), Khalid (2017), ISRA, RAM