Clifford Chance
Regulating Sukuk in the UK: the new framework
27 January 2010
HM Treasury (the "Treasury") has laid before Parliament the Financial Services and Markets Act 2000 (Regulated Activities) (Amendment) Order 2010 (the "Order"), the purpose of which is broadly to ensure that alternative finance investment bonds ("AFIBs") (such as sukuk) are treated in a similar manner to conventional debt securities for UK regulatory purposes. The Order is scheduled to come into force on 24 February 2010. This follows the recent consultation by the Treasury and the UK Financial Services Authority ("the "FSA") on the legislative framework for the regulation of sukuk and the publication of draft statutory instruments in December 2008 and October 2009.
