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  • 1.

    In general terms, what policy has your jurisdiction adopted towards Islamic finance? Are Islamic finance products regulated differently from conventional instruments? What has been the legislative approach?

  • 2.

    Market development
    How well established is Islamic finance in your jurisdiction? Are Islamic windows permitted in your jurisdiction?

  • 3.

    What is the main legislation relevant to Islamic banking, capital markets and insurance?

  • 4.

    Principal authorities
    Which are the principal authorities charged with the oversight of banking, capital markets and insurance products?

  • 5.

    Identify any notable guidance, policy statements or regulations issued by the regulators or other authorities specifically relevant to Islamic finance.

  • 6.

    Central authority
    Is there a central authority responsible for ensuring that transactions or products are shariah-compliant? Are IFIs required to set up shariah supervisory boards? May third parties, related parties or fund sponsors provide supervisory board services or must the board be internal?

  • 7.

    Board approval
    Do members of an institution’s shariah supervisory board require regulatory approval? Are there any other requirements for supervisory board members?

  • 8.

    What are the requirements for Islamic banks to be authorised to carry out business in your jurisdiction?

  • 9.

    Foreign involvement
    May foreign institutions offer Islamic banking and capital markets services in your jurisdiction? Under what conditions?

  • 10.

    Takaful and retakaful operators
    What are the requirements for takaful and retakaful operators to gain admission to do business in your jurisdiction?

  • 11.

    Foreign operators
    How can foreign takaful operators become admitted? Can foreign takaful or retakaful operators carry out business in your jurisdiction as non-admitted insurers? Is fronting a possibility?

  • 12.

    Disclosure and reporting
    Are there any specific disclosure or reporting requirements for takaful, sukuk and Islamic funds?

  • 13.

    Sanctions and remedies
    What are the sanctions and remedies available when products have been falsely marketed as shariah-compliant?

  • 14.

    Jurisdiction in disputes
    Which courts, tribunals or other bodies have jurisdiction to hear Islamic finance disputes?

  • 15.

    Accommodation of concepts
    Mudarabah - profit sharing partnership separating responsibility for capital investment and management.

  • 16.

    Murabahah - cost plus profit agreement.

  • 17.

    Musharakah - profit sharing joint venture partnership agreement.

  • 18.

    Ijarah - lease to own agreement.

  • 19.

    Wadiah - safekeeping agreement.

  • 20.

    Securities structuring
    Sukuk - Islamic securities. Have sukuk or other Islamic securities been structured and issued in your jurisdiction to comply with Islamic principles, such as the prohibition of interest?

  • 21.

    Legal position
    What is the legal position of sukuk holders in an insolvency or a restructuring? Are sukuk instruments viewed as equity or debt instruments? Have there been any court decisions or legislation declaring whether sukuk holders are deemed to own the underlying assets?

  • 22.

    Takaful - Islamic insurance. Are there any conventional cooperative or mutual insurance vehicles that are, or could be adapted to be, shariah-compliant?

  • 23.

    Which lines of insurance are currently covered in the takaful market? Is takaful typically ceded to conventional reinsurers or is retakaful common in practice?

  • 24.

    Regulatory obstacles
    What are the principal regulatory obstacles facing the Islamic finance industry in your jurisdiction?

  • 25.

    Shariah law
    In what circumstances may shariah law become the governing law for a contract or a dispute? Have there been any recent notable cases on jurisdictional issues, the applicability of shariah or the conflict of shariah and local law relevant to the finance sector?

  • 26.

    Institutional takeover
    Are there any special considerations for the takeover of an Islamic financial institution, outside the requirements of the general merger control regime?

  • 27.

    Other notable features
    Are there any notable features of the Islamic finance regime and markets for Islamic finance products in your jurisdiction not covered above?

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