(2) A PSIA may be restricted or unrestricted. A restricted PSIA is a PSIA that is subject to a restriction as to where, how or for what purpose the investment funds may be invested. For the Rules relating to unrestricted PSIAs—see BANK. Note 1 For guidance on the treatment of PSIAs as restricted or Note 2 paragraphs 12 and 13 of of Concepts of AAOIFI’s Statement Financial Accounting for Islamic Banks and Financial Institutions. See also Appendix D of Financial Accounting Standard FAS 5. (3) In this Chapter: of a PSIA includes a PSIA manager that owns the PSIA that owner it manages. The PSIA manager is generally the owner of the PSIA, but an owner Note can outsource the management of the PSIA to another person. 9.1.3 Policies—PSIAs An Islamic INMA policies must include the following: firm’s (a) how to ensure that PSIAs are managed in accordance with their instructions; IAHs’ (b) how to ensure that the funds of PSIAs are invested in accordance with the terms of business; firm’s (c) the priority of the investment of the PSIA funds and owners’ those of the IAHs; (d) how the interests of the IAHs are safeguarded; (e) the basis for allocating expenses and profits or losses to IAHs; (f) how provisions and reserves against equity and assets will be applied;
(2) A PSIA may be restricted or unrestricted. A restricted PSIA is a PSIA that is subject to a restriction as to where, how or for what purpose the investment funds may be invested. Note 1 For the Rules relating to unrestricted PSIAs—see BANK. Note 2 For guidance on the treatment of PSIAs as restricted or paragraphs 12 and 13 of AAOIFI’s Statement of Concepts of Financial Accounting for Islamic Banks and Financial Institutions. See also Appendix D of Financial Accounting Standard FAS 5. (3) In this Chapter: owner of a PSIA includes a PSIA manager that owns the PSIA that it manages. Note The PSIA manager is generally the owner of the PSIA, but an owner can outsource the management of the PSIA to another person. 9.1.3 Policies—PSIAs An Islamic INMA firm’s policies must include the following: (a) how to ensure that PSIAs are managed in accordance with their IAHs’ instructions; (b) how to ensure that the funds of PSIAs are invested in accordance with the firm’s terms of business; (c) the priority of the investment of the PSIA owners’ funds and those of the IAHs; (d) how the interests of the IAHs are safeguarded; (e) the basis for allocating expenses and profits or losses to IAHs; (f) how provisions and reserves against equity and assets will be applied;
QFCRA_9583_VER3.docx