The general policy adopted in relation to the regulation of Islamic products has been summed up as “no obstacles, no special favours”. This sentiment reflects the FSA’s general aim to promote
a level playing field between conventional and Shariah-compliant providers. It has been stressed that the FSA is intended to be a financial, not a religious, regulator and, against this background, it would appear that the FSA intends to treat applications for authorisation of a Takaful operator on the same basis as those made by a conventional insurer. Unlike jurisdictions such as Bahrain, there appears to be no intention on the part of the FSA to enact separate regulations for Takaful. It is therefore evident that, within the UK’s existing insurance framework, an application for authorisation of
a Takaful operator must meet the same criteria as an application by a conventional insurer.