A restricted investment account is a profit-sharing account offered in Islamic banking in which the account holder places conditions on how the bank may invest the money, for example by naming a sector, a project, an asset class or a time period. The bank usually acts as manager under a mudarabah contract, sharing profits in an agreed ratio, or as agent for a fee under wakalah. Losses fall on the account holder unless the bank has been negligent or has broken the agreed terms.
It contrasts with the unrestricted investment account, where the bank may mix the funds with its own and invest them as it sees fit. Because restricted funds are managed to the customer's mandate, standards issued by AAOIFI have traditionally treated them as off-balance-sheet, much like a managed fund, and they are reported separately.