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Philosophy and Fundamentals of Sharī’ah for Islamic Finance
SHA0011

UNIT 4: ROLES AND DUTIES OF SHARĪ’AH ADVISOR AT FUND
MANAGEMENT LEVEL
Among other, Shariah advisor is expected :

1. To advise all aspects of Islamic fund management business in
accordance with Sharī’ah principles.

2. To provide Sharī’ah expertise and guidance on all matters, particularly in
documentation, structuring and investment instruments, and ensure
compliance with relevant SC regulations and/or standards, including
resolutions issued by the SAC.

3. To review reports prepared by compliance officers of the Islamic fund
manager on investment transaction to be in compliance with Sharī’ah
principles.

4. To provide a written opinion and/ or periodic report to confirm and
certify whether the Islamic fund management business has been
managed and/or administered in accordance with Sharī’ah principles.

In carrying out the roles above, a Sharī’ah advisor must act with due care,
skill and diligence.

UNIT 5: ROLES AND DUTIES OF SHARĪ’AH OFFICER/SECRETARIAT AT
INSTITUTIONAL LEVEL (BANK & TAKAFUL)

1. Sharī’ah Review
a. Sharī’ah review is a regular assessment on Sharī’ah compliance
in the activities and operations of the IFI

b. The review process shall cover:

i. planning the review program which includes the objectives,
scope, reporting, rectification and follow-up actions
followed by the execution of the program.

ii. documentation of the processes involved in the review

iii. communicating the outcome of the review and high
lighting any non- compliances to the Sharī’ah committee
and the management; and rectifying any instances of
non-compliance with the Sharī’ah to prevent such events
from recurring.

2. Sharī’ah Audit
a. Sharī’ah audit is a periodical assessment conducted from time
to time, in order to provide an independent assessment and
objective assurance designed to add value and improve
the degree of compliance in relation to the IFI’s business operations.
The main objective is to ensure a sound and effective internal
control system for Sharī’ah compliance.