Who decides whether an investment fund is Shariah compliant?
The fund's own Shariah board or adviser does, against a named screening standard, and reviews it on an ongoing basis. No regulator makes that decision.
In practice four things sit behind a compliance claim:
- A Shariah board or adviser, named and identifiable
- A screening standard - AAOIFI, an index methodology such as MSCI Islamic or S&P Shariah, or an in-house method
- A certificate covering a specific product for a stated period
- Ongoing review and purification between certificates
Australian context
ASIC regulates financial conduct and disclosure, and APRA supervises superannuation prudentially. Neither issues religious rulings, and neither approves a fund as Shariah compliant.
Factual and educational information only. Nothing on this page is financial product advice, a recommendation, or a Shariah ruling. Consider your circumstances and the product's disclosure documents, and seek licensed advice and qualified scholarly guidance before acting.