APPLICATION FORMS AND NOTICES (AFN) – AUT – IFS
For DFSA use only
Form AUT – IFS
Applying for Authorisation
Islamic Finance Business supplement
This supplement must be submitted if you intend to carry on Islamic Financial Business. Islamic
Financial Business is defined in the GLO module of the DFSA.
The Notes for Applicants contains information that may assist you in completing this
supplement. Please refer to the section entitled “Islamic Finance Business” in the notes. Each
note is linked to a specific question in this supplement via a referenced number. Please note
the submission of this supplement is in addition to the submission of the Core Information
form/Exempt Fund form and any other applicable supplements. Where you feel a question in
the supplement may have already been answered in the Core Information form/Exempt Fund
form you may provide cross reference to the relevant section.
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APPLICATION FORMS AND NOTICES (AFN) – AUT – IFS
SECTION 1: CORPORATE GOVERNANCE, STRATEGY AND BUSINESS MODEL
IF1. Please explain what experience, if any, you have in carrying on the proposed business either
in Dubai or in other jurisdictions.
 If the business was or is currently regulated please state the relevant Financial Services
Regulator and provide details of the Licence or registration.
 For applicants applying as a Branch, please provide details about the applicant’s head
office as well.
IF2. Will you be conducting Islamic Financial Business as an Islamic Financial Institution or
through an Islamic Window?
IF3. Please attach a flowchart for each Transaction type that you intend to undertake identifying
the underlying Shari’a compliant contract(s) that would apply to the Islamic products or
services being offered. This should also include Clients, counterparties, Service Providers,
the flow of funds, assets and confirmations.
IF4. Please identify the members of the Shari’a Supervisory Board. For each member, please
provide a summary profile that includes a description of relevant skills and experience, other
Shari’s Supervisory Board memberships, and any other business or commercial interests.
IF5. Please describe how the Shari’a Supervisory Board interacts with the executive board and
wider governance structures. How is appointment, dismissal and remuneration of Shari’a
Supervisory Board members determined?
IF6. Please describe what involvement, if any, the Shari’a Supervisory Board will have in relation
to the key aspects of business strategy: particularly Clients, products, distribution channels.
IF7. Please describe how you will manage conflicts of interest that may arise, including any that
involve a Shari’a Supervisory Board member. Do you have a conflicts management policy
which covers Shari’a Supervisory Board members?
SECTION 2: FINANCIAL AND OPERATIONAL RISKS
Risk management
IF8. Please explain how your risk management policies will address risks associated with the
Islamic Financial Business that you will be undertaking.
IF9. How will you ensure that you have sufficient access to funding at all times? What liquidity
management tools are available?
Internal control environment
IF10.How will the Shari’a Supervisory Board oversee implementation of its fatwa’s, rulings and
guidelines? What information is provided to the Shari’a Supervisory Board or board on
Shari’a compliance of the business?
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APPLICATION FORMS AND NOTICES (AFN) – AUT – IFS
IF11. Describe how the compliance function will be undertaken in respect of Shari’a compliance?
How will you identify, manage and report any breaches in Shari’a compliance?
IF12.Please describe how you will organise and implement the periodic internal and external
Shari’a reviews. Who will be responsible for carrying out these reviews? Who will be
responsible for implementing any action points?
SECTION 3: CONDUCT OF BUSINESS RISKS TO CLIENTS AND MARKETS
Product disclosure and marketing
IF13. Please describe how you will ensure all marketing and product literature is accurate with
respect to the Shari’a compliance of a particular product or service and is clear on which
Shari’a Supervisory Board has approved the Shari’a aspects.
IF14.Please describe the disclosures you will make in respect of Shari’a compliant products, in
addition to those required for conventional products, including disclosures related to financial
risks.
Profit-Sharing Investment Accounts
IF15.Please describe what type of Profit Sharing Investment Accounts you will be offering
(restricted Profit Sharing Investment Accounts, unrestricted Profit Sharing Investment
Accounts). How will the funds of PSIA account holders be managed, and how will they be
represented on your balance sheet?
IF16.Please provide an overview of the internal controls in place that manage how the investment
of own funds, reserves and PSIA funds takes place, including how priorities for investment
are determined.
IF17.How will you determine fees and the allocation of profits amongst PSIA holders?
Insurance
IF18. What structural model will you have in place for managing the contributions made by Clients?
What Islamic Contracts will you use to govern this management?
IF19. How will you seek to fund any deficits that arise in the risk pools and/or investment funds?
Asset Management (portfolio management and Managing a Collective Investment Fund)
IF20. How will you seek to ensure that the investment strategy and investment selections will be
Shari’a compliant and suitable for the Client/Fund?
Islamic Windows
IF21. Please describe how your Islamic Financial Business will be separated from your
conventional business.
IF22. Please confirm that your Islamic Financial Business can be audited separately and in line
with the appropriate Islamic auditing standards.
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