ZICO Shariah Advisory Services Sdn Bhd


ZICO Shariah Advisory Services Sdn Bhd (“ZICO Shariah”) is a member of ZICO Holdings and is registered with the Securities Commission Malaysia (“SC”) to advise on sukuk issuances, Islamic funds as well as other Islamic capital market products and instruments. ZICO Shariah is also approved by the Central Bank of Malaysia (“BNM”) to provide Shariah advice, Shariah review and Shariah audit services to Islamic financial institutions.

ZICO Shariah has more than 15 years of experience in Islamic finance. Its team members possess Shariah, accounting, business and legal qualifications with over a decade of experience in structuring, drafting, advisory and consultation work in relation to Islamic finance. It provides Shariah advice that is enhanced by practical legal knowledge and insight gained from having worked on major local and cross-border Islamic finance transactions as well as Shariah-compliant funds and investments are as follows:

Role of the Shariah Adviser

ZICO Shariah is the Shariah Adviser to the Areca Islamic Cash Fund (“Fund”). As the Shariah Adviser, the role of ZICO Shariah is to ensure that the operations and investments of the Fund are in compliance with Shariah requirements.

The Shariah Adviser reviews the Fund’s investments to ensure the fund manager has managed and administered the Fund in accordance with Shariah principles and complied with the applicable guidelines, rulings and decisions issued by the SC.

For the Fund’s investment in domestic Shariah-compliant equity and sukuk, Islamic deposits and investment accounts, Islamic money market instruments and Islamic negotiable instruments, the screening of such investments are based on the “List of Shariah-Compliant Securities by the Shariah Advisory Council of the SC”, list of sukuk issued by the SC, list of Islamic money market instruments provided by BNM. The list of Islamic deposits and investment accounts is to be provided by the fund manager on a monthly basis to the Shariah Adviser to ensure that all placements are in accordance with Shariah principles.

The final responsibility for ensuring the Shariah compliance of the Fund in all relevant aspects rests solely with the fund manager.

Responsibilities of the Shariah Adviser

In line with the applicable SC Guidelines, the roles of the Shariah Adviser are as follows:

1. To ensure that the Fund is managed and administered in accordance with Shariah principles;

2. To provide expertise and guidance for the Fund in all matters from the perspective of Shariah, including on the Fund’s trust deed and information memorandum, its structure and investment process, and other operational and administrative matters;

3. To consult the Shariah Advisory Council (“SAC”) of the SC where there is ambiguity or uncertainty in respect the SC who may consult its SAC;

4. To scrutinise the Fund’s compliance reports as provided by the fund manager’s compliance officer, transaction reports provided by or duly approved by the Trustee and any other report deemed necessary for the purpose of ensuring that the Fund’s investments are in line with Shariah principles;

5. To prepare reports to be included in the Fund’s annual reports certifying whether the Fund have been managed and administered in accordance with Shariah principles;

6. To ensure that the Fund complies, with any guideline, ruling or decision issued by the SC, with regard to Shariah matters;

7. To vet and advise the promotional materials of the Fund; and

8. To assist and attend any ad-hoc meeting called by the SC and/or any other relevant authority.

9. To apply ijtihad (intellectual reasoning) to ensure all aspects relating to the operations and investments of the Fund are in compliance with the Shariah, in the absence of any rulings, principles and concepts endorsed by the SAC of SC.

Profile of designated persons responsible for Shariah matters relating to the Fund
Dr Aida Othman is a Shariah adviser at ZICO Shariah Advisory Services. She is also a Partner at Messrs.Zaid Ibrahim & Co. Dr. Aida specializes in Islamic banking and finance, Islamic capital market instruments and Takaful products and operations as well as on Shariah compliance and governance, including on the legal and regulatory framework for Islamic finance. In particular, she has advised on the structure and documentation for Islamic banking products, the legal and regulatory framework for Islamic financial services, structuring and Shariah compliance issues for sukuk issuances, private equity and unit trust funds, Shariah review and Shariah audit of Islamic financial institutions, takaful products and operations and Islamic wealth management and planning.#


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