Principles-based regulation will help Islamic finance flourish - FSA

The regulator has published a paper outlining its future role in the growth of Islamic finance, pointing out that it is now worth around £250bn globally. It says it hopes the UK will be the “major European centre” for Islamic financial products and services. The paper identifies some of the challenges and opportunities specific to Islamic finance and says it has actively encouraged its growth by providing an “open and flexible regulatory environment”, which accommodates both Islamic and non-Islamic financial institutions. It adds it is the first European regulator to authorise a wholl...