Oman’s Capital Market Authority (CMA) has revealed to The Times of Oman that it will favour standalone Takaful companies, which is against the window operations proposed for conventional banks.
"It looks like CMA may not allow window operations (of conventional insurance firms), rather allow standalone companies because conventional insurance is completely different from Takaful insurance. Most of our advisors are in favour of a separate entity," Abdullah bin Salem al Salmi, Acting Executive President of Capital Market Authority, told Times of Oman. He added that the minimum capital for promoting a Takaful insurance company is envisaged at OMR 10 million.
Times of Oman reported al Salmi as saying that a conventional insurance company planning to enter a Takaful business must to seek a separate licence and form a separate company. "It will be a separate entity altogether. We also require them to have a Shari’ah board consisting of three members," he said.
However, this is dependent on a report from Clifford Chance, which is reviewing the current rules and regulations and will advise whether the country needs a separate set of regulations for accommodating Islamic products or only amendments to the existing rules. The report is expected by the end of March.
source: CPI Financial