Glossary

Accounting and Auditing Organisation for Islamic Financial Institutions — sets Shariah accounting and screening standards.

Australian Financial Services Licence. Required by entities providing financial product advice. InvestHAQ does not hold one in Stage 1.

Permissible under Islamic law. In investing, refers to products screened against Shariah criteria.

Prohibited under Islamic law. Includes interest-bearing debt, alcohol, gambling, tobacco, weapons, conventional insurance, adult entertainment.

Interest or usury. Prohibited in Islam — the primary screening criterion for halal investments.

Section 708 of the Corporations Act — defines who is a "sophisticated investor": net assets > $2.5M, income > $250k for 2 years, or investing > $500k.

Islamic law, derived from the Quran, Hadith, scholarly consensus, and analogical reasoning.

Islamic financial certificates representing proportional ownership in an asset or business. Equivalent in function to a bond but structured to avoid interest.

An Islamic cooperative risk-sharing scheme — Shariah-compliant alternative to conventional insurance.

Target Market Determination — document describing the class of retail investors a financial product is designed for.

The total ongoing cost of holding a managed investment fund, expressed as a % of AUM per year. Previously shown as ICR (Indirect Cost Ratio); Australian disclosure is moving to "Total Cost Ratio".

Obligatory annual charity — 2.5% of net zakatable wealth above the nisab threshold.