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6.3.4. Lessons Learned, Recommendations and Transferring Knowledge
As a global financial centre, the UK has substantially put in place the required legal and
regulatory framework which are underpinned by policies of the government to ensure the
insurance and reinsurance industry remains robust amidst global uncertainties. As
demonstrated above, the existing legal and regulatory framework for insurance and reinsurance
applies to Takaful companies and products. However, there is a need to incorporate alternative
insurance models into the existing legislation such as the Financial Services and Markets Act
2000 (Regulated Activities) Order 2001 to reflect Takaful models. It may fit perfectly into the
Schedule of the subsidiary legislation. The Financial Conduct Authority’s Handbook did not
expressly recognise Takaful. This aspect may be incorporated into the Handbook as many
conventional insurance companies are expected to roll out insurance policies for the Takaful
Alternative Student Finance, which will be implemented across UK universities in 2020. The
value proposition provided by Takaful which offers some benefits of mutual assurance where
participants share surpluses may help to disrupt the current insurance industry. It is where
experts in product development are required to develop Takaful products that are not only
Shari'ah-compliant but also conventionally competitive.
Having a robust and legal regulatory framework for Takaful in the UK will better enhance its
status as a global financial centre where UK Takaful companies may be servicing the whole
world through subsidiaries and branches across the Muslim world. To ensure this competitive
edge sees the light of the day, Table 20 presents the issues identified and policy
recommendations to ensure the Takaful sector in the UK insurance industry does not continue
to suffer from its dark past.
compliant student loan financing. The TASF is expected to be established by the Department
for Education as an independent entity which is ring-fenced from the current student loan
system. After the creation of the independent body, the HM Treasury provides the funding to
the TASF entity based on qard hasan or interest-free loan. The TASF then appoints the TO
which may be the Student Loans Company (SLC) to administer the funds utilising the wakalah
model or service agency agreement for a fee. Therefore, while using the same platform, the
SLC would provide services relating to student loans.