Regulation and governance
Is a Shariah board the same as FCA regulation?
Differences between religious advisory boards and UK financial regulation by the FCA.
The short answer
No. A Shariah board advises on religious compliance. FCA regulation covers consumer protection, conduct and financial rules in the UK. They are separate systems with different aims.
Roles compared
Shariah boards assess whether products and actions meet their religious standards. The FCA supervises firms for legal compliance, treating customers fairly and managing financial crime risk. A product can be FCA-regulated but still be non-permissible according to a Shariah board.
What to do as a customer
Check both the provider’s FCA permissions and the Shariah board’s scope. If you are unsure about a provider’s Shariah claims, ask for the board’s opinion and governance documents.
What this means in practice
- 1Use the FCA Firm Checker to confirm a firm’s permissions and status.
- 2Ask the provider for the Shariah board’s opinion, its members and meeting minutes if available.
- 3Treat FCA regulation and Shariah governance as complementary but distinct.