Saturday, 21 October 2017, 30 Muharam 1439H Solat Time:
KL Imsak 5:31 | Subuh 5:41 | Syuruk 6:56 | Zohor 1:01 | Asar 4:18 | Maghrib 7:00 | Isyak 8:10

RIA via IAP


Bank Islam Malaysia Berhad’s

Restricted Investment Account via IAP

What is Investment Account Platform (IAP) ?

Investment Account Platform (IAP) is a multi-bank platform that facilitates chanelling of funds from investors to finance viable ventures. Funds mobilised via IAP are intermediated by participating Islamic banks through investment account (IA) products.

IAP portal is opened to investors (individual and non-individual) to register as investor and view viable ventures (i.e. companies that need financing). IAP portal also allows interested ventures that intend to seek financing to register and submit their application via IAP portal.

The portal is owned and operated by IAP Integrated Sdn Bhd which is a subsidiary of Raeed Holdings Sdn Bhd. Raeed Holdings Sdn Bhd is a consortium formed by six Islamic Banks. The six Islamic Banks are Bank Islam Malaysia Berhad, Maybank Islamic Berhad, Bank Simpanan Nasional, Affin Islamic Bank Berhad, Bank Muamalat Malaysia Berhad and Bank Kerjasama Rakyat Malaysia Berhad.

In this IAP portal, Sponsoring Banks (SB) will offer investors to place funds in an Investment Account (IA) product to finance viable ventures.

Interested venture that intends to seek financing can also register as a venture through IAP portal and upload the necessary documents i.e Financial Statement and Corporate Information which are required by the SB.

SB will select the venture which they are interested to sponsor. The venture will then go through a standard credit screening of the SB and once approved, the venture will then be listed in the IAP portal by the SB. In the IAP portal there will be a list of ventures that will be listed by different SB. Potential investors can view, select and invest in their preferred venture.

SB will specify a time frame to raise funds i.e. a campaign period for the venture that is listed in the IAP portal. Within the campaign period investors can book for their investment and subsequently pay for their booking within the stipulated time frame at the respective SB.

Brief process flow for Fund Raising through Investment Account Platform (IAP)

1. Venture register on IAP portal.

2. Venture to submit their application via online through IAP portal or offline directly to Bank Islam.

3. Bank Islam will raise funding (i.e. list) for the approved venture via IAP portal during a campaign period.

4. Investors  register in IAP portal and make an investment booking.

5. IAP portal will notify Bank Islam on the successful booked RIA by the investors.

6. Investors make payment to Bank Islam for the booked investment amount.

7. Bank Islam will update IAP portal on the successful paid RIA.

8. When the fund is fully subscribed. Bank Islam will close the campaign and disburse the funds collected from the investors to the venture under the financing facility.

What is the contract used for Restricted Investment Account (RIA)? The contract used for Investment Account (IA) by Sponsoring Bank (SB) varies from Bank to Bank. For Bank Islam, the contract used to offer IA to investors is Wakalah contract. Below is a Wakalah contract diagram.

1. Investors are the fund provider.

2. Bank Islam is the Agent for investors and the Sponsoring Bank for the venture.

3. Bank Islam uses the collected funds from the investors to disburse the financing facility to the venture.

4. Venture to pay the installment under the financing facility.

5. Bank Islam will distribute the profit and principal based on Wakalah contract.

6. If venture is unable to pay the installment, no distribution of profit will be made to investors due to no profit to be declared. Any loss will be borne by the investors.

Note :- Actual profit can be either equal to EPR (Expected Profit Rate ), less or higher than the EPR. If the actual profit is higher than the EPR, the Bank will distribute the profit based on the EPR. If the actual profit is lower than the EPR, the Bank will distribute the profit based on the actual profit.

What are the benefits for investor and venture registering via Investment Account Platform (IAP)

Information on Ventures Available to Investors

The parties involved for KOBIMBING RIA via IAP

Capital Market Business Team

Potential investors and ventures can contact the Capital Market team for more information on investment and financing opportunities

FREQUENTLY ASKED QUESTIONS (FAQs)

1. Who can invest in Restricted Investment Account (RIA)?

RIA is offered to individual and non-individual.

2. What is the minimum investment amount for investor to invest in RIA ?

The minimum amount for investor to invest in RIA depends on the venture’s financing requirements. However the current minimum investment amount in RIA is RM10,000. If investor wishes to invest more than RM10,000, any additional investment must be in multiple of RM10,000.

3. Is it a requirement for investor to have an account with Bank Islam?

Yes, investor is required to have a Bank Islam Current or Savings Account. Investors who don’t have a Bank Islam Current or Savings Account, are required to open a new account.

4. What are the methods that can be used by investors to make payment for the RIA?

Individual investors can make payment at Bank Islam branches or via internet banking. Non-individual investors can make payment at Bank Islam branches.

5. What are the documents required for investors to make payment at branches?

Individual Customer

New Customer

1. Booking Slip from IAP portal

2. Documents required for Savings Account and Current Account opening

3. Letter of instruction to debit Current Account or Savings Account (to be obtained from the branch)

Existing Customer

1. Booking Slip from IAP portal

2. Letter of instruction to debit Current Account or Savings Account (to be obtained from the branch)

 

Non-Individual Customer

New Customer

1. Booking Slip from IAP portal

2. Documents required for Current Account opening

3. Letter of instruction to debit Current Account (to be obtained from the branch)

Existing Customer

1. Booking Slip from IAP portal

2. Letter of instruction to debit Current Account (to be obtained from the branch)

6. What are the types of contract offered under the RIA product?

We currently offer Wakalah contract.

7. How is the profit distributed to the customer?

The profit is distributed to the customer based on the investment contract. Under the Wakalah contract, the investor’s profit will be based on the Expected Profit Rate (EPR).

8. What happens if the Actual Profit Rate is above the Expected Profit Rate (EPR)?

The customer will receive the EPR or the Actual Profit Rate, whichever is lower.

9. Is the principal amount of investment guaranteed?

The the principal amount of investment is not guaranteed by the Bank or insured by PIDM.

10. Can BIMB Holdings Bhd Group’s staff invest in this RIA via IAP?

Yes.

Poster_RIA_IAP_ENG_Bank_Islam

Print Friendly
Bank Islam