INMA 9.1.5 Terms of business

An Islamic INMA firm that manages a restricted PSIA must ensure that the following information is included in the terms of business given to an IAH:

(a) how and by whom the funds of the IAH will be managed and invested;
(b) the PSIA’s investment objectives and details of its policy on diversification;
(c) the basis for allocating profits and losses between the owner and the IAH;
(d) a summary of the policies for valuing the PSIA’s assets;
(e) a summary of the policies for transferring funds to and from any profit equalisation reserve or investment risk reserve;
(f) particulars of the management of the PSIA;
(g) particulars of the management of any other person to whom the owner has outsourced, or will outsource, the management of the PSIA, including:
(i) the person’s name;
(ii) the person’s regulatory status; and
(iii) details of the arrangement;
(h) details of any arrangement for early withdrawal, redemption or other exit and any costs to an IAH as a result;
(i) confirmation of the IAH’s investment objectives;
(j) how the IAH’s investment will be segregated from the manager’s funds and from any claims by the firm’s creditors;
(k) whether funds from the PSIA will be mixed with the funds of another PSIA;
(l) any applicable charges and the basis on which such charges will be calculated;
(m) any fees that the firm can deduct from the profits of the PSIA.
Derived from QFCRA RM/2014-4 (as from 1st January 2015).