Top officials of the Financial Regulatory Authority (FRA) have met executives of takaful companies on complying with new regulations issued this year that aim to improve transparency and efficiency in the Islamic insurance segment.
The Authority extended the deadline for takaful operators to adjust to the new rules by a further six months until 24 February 2020, provided that takaful companies committed to submit to the Authority a plan of action, that includes a timetable and measures taken to comply with the new regulations, by 30 September 2019.
Dr Mohamed Omran, FRA chairman, said that the regulations (covered by Resolution No. 23 of 2019), issued in the first quarter of this year, are in line with international norms and cover matters like retakaful, capital, investments, shariah board, surpluses and how to distribute them. The new rules, which had given Islamic insurers six months to adjust their operations, replace regulations that were introduced in 2004.