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TA-1.2.1

Past version: Effective up to 30 Jun 2007
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The table below lists the Modules of the BMA Insurance Rulebook and indicates those that apply to takaful and retakaful firms. The remaining chapters of this guide describe, in more detail, the principal requirements of each module of the regulations that apply to takaful and retakaful firms.

HIGH LEVEL STANDARDS

Module AU (Authorisation) Regulations dealing with the licensing requirements and conditions for providers of regulated insurance services. All sections applicable to insurance firms are also applicable to takaful and retakaful firms.
Module PB (Principles of Business) Principles that are applicable to all insurance licensees regulated in Bahrain; these apply in full to takaful and retakaful firms.
Module HC (High-level Controls) Regulations in respect of governance, systems and controls of licensees. All sections apply in full to takaful and retakaful firms. In addition there are special requirements with respect to Shari'a Supervisory Boards of takaful firms.
Module AA (Auditors and Actuaries) Regulations on the appointment and functions of external auditors and actuaries of insurance licensees. These apply in full to takaful and retakaful firms.
Module GR (General Requirements) Regulations dealing with requirements covering other areas not included in other Modules. These include: books and records, corporate and trade names, dividends, portfolio transfers, controllers, close links, statutory deposits, suspension of business and appointed representatives. These regulations apply in full to takaful and retakaful firms.


BUSINESS STANDARDS

Module CA (Capital Adequacy) Regulations governing minimum capital and solvency requirements and the valuation of assets and liabilities. Some of these regulations apply to all insurance firms; some are specific to takaful firms, dealing with solvency requirements for the takaful fund and the potential for loans from the takaful operator (shareholder fund) should the takaful fund fail to meet the solvency requirements.
Module BC (Business Conduct) The Code of Business Conduct governs the sale of insurance and applies to all insurance licensees. In addition, there are several requirements specifically applicable to takaful dealing with restrictions on the use of the term "takaful/retakaful", marketing and promotion of takaful products and disclosure of Wakala and Mudharaba fees to participants.
Module RM (Risk Management) Risk management standards applicable to licensees. These requirements apply in full to takaful and retakaful firms.
Module FC (Financial Crime) Regulations governing the monitoring and reporting of financial crime. This Module applies in full to takaful and retakaful firms.
Module TC (Training & Competency) Regulations to be developed will apply to both takaful insurance firms and conventional insurance firms.


REPORTING REQUIREMENTS

Module BR (BMA Reporting) Requirements for reporting to the BMA. Annual and quarterly reporting requirements, as well as group reporting, apply in full to takaful and retakaful firms.
Module PD (Public Disclosure) The public disclosure requirements pertaining to Bahraini insurance firms and overseas insurance firms apply in full to takaful and retakaful firms.


ENFORCEMENT AND REDRESS

Module EN (Enforcement) This Module outlines enforcement powers and processes that may be applied by the BMA and applies in full to all insurance licensees.
Module DP (Dispute Resolution) Regulations will be developed in 2005/2006.
Module CP (Compensation) Regulations will be developed in 2005/2006.