Implementation of the Prudential Principle (Al-Ihtiyathi) on Investment Manager Regulations in Managing Sharia Mutual Funds in Indonesia
- 10.2991/assehr.k.210531.091How to use a DOI?
- prudential principle (al-ihtiyathi), sharia mutual fund, investment manager
Sharia mutual fund investment carries risks so that the investment manager in carrying out the task of managing investor funds in addition to maximizing returns is also obliged to ensure that the benefits received by the customer are truly in line with sharia rules. The implementation of investment transactions in sharia mutual funds must be carried out according to the prudential principle (al-ihtiyathi) based on the rules set out in Fatwa No. 20/DSN-MUI/IV/2001 about Investment Implementation Guidelines for Sharia Mutual Funds. Whereas in POJK No. 24/POJK.04/2014 about Guidelines for Implementation of Investment Manager Functions, it is stated that the application of prudential principles is carried out by taking into account investment risks and the clear division of authority in determining the no. of transactions. Then mentioned in POJK No. 61/POJK.04/2016 about the Application of Sharia Principles in the Capital Market to Investment Managers that the application of sharia principles is carried out in two ways, the establishment of sharia investment managers and sharia investment management units. The application of this prudential principle is not explicitly explained in the regulation so that it contains an element of uncertainty related to being in force of prudential principles in the application of sharia principles. This research is a normative juridical analysis of how the prudential principle implemented in sharia mutual fund investment managers. Based on the results of the research that the application of the prudential principle (al-ihtiyathi) must be applied to start from the institutions, management methods, and services including sharia compliance obligations and laws.
- © 2021, the Authors. Published by Atlantis Press.
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Cite this article
TY - CONF AU - Aang Anzal Muhammad Gofar AU - Gemala Dewi PY - 2021 DA - 2021/06/29 TI - Implementation of the Prudential Principle (Al-Ihtiyathi) on Investment Manager Regulations in Managing Sharia Mutual Funds in Indonesia BT - Proceedings of the Asia-Pacific Research in Social Sciences and Humanities Universitas Indonesia Conference (APRISH 2019) PB - Atlantis Press SP - 727 EP - 733 SN - 2352-5398 UR - https://doi.org/10.2991/assehr.k.210531.091 DO - 10.2991/assehr.k.210531.091 ID - Gofar2021 ER -