IFR 8. IFR 8. TAKAFUL
IFR 8.1 IFR 8.1 Application
IFR 8.1.1(a) This IFR 8 applies to an Authorised Person who carries on or holds itself out as carrying on (either as an Islamic Financial Institution or through an Islamic Window) insurance business or insurance intermediation in the form of Takaful.(b) In addition to the requirements in this IFR 8, the requirements that apply to conventional insurance business or Insurance Intermediation shall apply to an Authorised Person that carries on or holds itself out as carrying on insurance business or Insurance Intermediation in the form of Takaful.
IFR 8.2 IFR 8.2 Specific disclosure for Takaful
IFR 8.2.1 IFR 8.2.1
Where an insurer or an insurance intermediary conducts Takaful with a retail client, the disclosure for the purposes of COBS 6.7 must include:(a) the nature of the contracts between the Takaful Fund and the Takaful Operator;(b) the method of calculation of any fees or share of profits paid from the Takaful Fund to the Takaful Operator;(c) the basis on which any surpluses in the Takaful Fund will be shared; and(d) any circumstances in which additional contributions to the Takaful Fund may be required.
Amended on (3 February, 2020).
Guidance(i) Authorised Persons conducting insurance business comprising Takaful must comply with the requirements in PIN. Takaful-related prudential requirements are not included in these Islamic Finance Rules because of the closely integrated nature of such requirements with the requirements that apply to conventional insurance.(ii) Note that structures of Takaful Operators (including Retakaful Providers) vary, as do the Islamic contracts governing their business. As the Regulator has not as yet thought it appropriate to limit the permissible structures and contracts, the Regulator is willing to consider modifications to the ADGM Rulebook to apply the most appropriate prudential regime to a Takaful Operator. For many Takaful Operators, this is likely to involve capital tests at the level of the Takaful participants' fund or funds, and for the firm as a whole.