INMA 9.1.2 Profit-sharing investment accounts

(1) A profit-sharing investment account (or PSIA) is an account, portfolio or fund that satisfies the following conditions:
(a) it is managed by an authorised firm in accordance with Shari'a and is held out as such;
(b) under a management agreement with the firm, the investment account holder (or IAH) concerned and the firm agree to share any profit in a specified ratio, and the IAH agrees to bear any loss not caused by the firm's negligence, misconduct or breach of contract.
(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 IBANK.

Note 2 For guidance on the treatment of PSIAs as restricted or unrestricted — see 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.
Amended by QFCRA RM/2019-4 (as from 1st January 2020).