Monitoring & Compliance

Monitoring & Compliance

SHARIAH COMPLIANCE 
  • Index Provider’s Shariah Advisory Board screens the constituents PERIODICALLY
  • SC’s Shariah Advisory Council screens equities listed on Bursa Malaysia SEMI-ANNUALLY
  • Fund’s Shariah Advisor/Committee:
  1. Conduct REGULAR REVIEWS AND AUDITS on Islamic ETF to ensure STRICT COMPLIANCE with the Shariah principles and practices
  2. Verifies that securities held in Islamic ETF COMPLY WITH SAC-APPROVED LIST
  3. Verifies that PROCESSES AND PROCEDURES adopted by the Manager of Islamic ETF COMPLY WITH SHARIAH REQUIREMENTS
  • HANDLING OF SECURITIES RECLASSIFIED AS NON-SHARIAH COMPLIANT
  1. Portfolio rebalancing on remaining securities
  2. Replacement with a shariah compliant security (non-index) that has high correlation with the substituted index securities
  3. Invest in CASH OR CASH EQUIVALENTS
  4. Process is conducted PERIODICALLY
     5.  ETF Professional