Islamic Finance Provider Regulatory Verification Checklist

“Islamic”, “halal” and “Shariah-compliant” describe a religious claim; they do not identify the legal entity, licence or regulatory permission behind a financial service. This checklist helps South African households verify the provider before comparing products.

Educational information only: This is not legal, financial, tax or Shariah advice. Verify current records with official authorities and refer unresolved matters to appropriately qualified professionals.

1. Record the exact legal entity

Capture the registered name, registration number, trading name, address and contact details from the contract. A group brand may cover several entities with different permissions.

2. Define the activity

Write down what the provider actually does: advice, intermediary services, investment management, banking, insurance, credit, payment services or administration. Regulatory checks must follow the activity.

3. Identify the relevant authority

Map each activity to the Financial Sector Conduct Authority, Prudential Authority, National Credit Regulator or another applicable body. Record the official source and search date.

4. Verify the FSP record

Where financial services are involved, search the FSCA record for the entity, licence status and approved categories. Save the result rather than relying on a licence number in marketing material.

5. Check the individual representative

Confirm whether the person giving advice or rendering intermediary services acts under the stated FSP. Ask the FSP to resolve any mismatch in names, categories or status.

6. Check prudential status

For banks and insurers, verify the institution through the Prudential Authority or other official register. Distinguish the regulated institution from an introducer, platform or distribution partner.

7. Verify credit permissions

For finance agreements, search the National Credit Regulator records where applicable. Keep the registration evidence with the quotation and proposed agreement.

8. Match permissions to the product

A valid registration may not cover every service. Record the product, service category, contracting entity and whether any discretionary authority or custody is involved.

9. Review complaints and ombud routes

Obtain the provider’s complaints policy, responsible contact and applicable ombud route. Record response periods and the documents needed to escalate a dispute.

10. Separate regulation from Shariah review

Regulatory authorisation does not certify a product as halal. Keep a second evidence chain for the contract, assets, cash flows, governance and qualified Shariah assessment.

11. Collect product-specific Shariah evidence

Request the current certificate or report, its scope, date, reviewing scholars and product version. A generic certificate for a group may not cover the exact contract being offered.

12. Confirm who holds client money or assets

Identify the bank, custodian, nominee or administrator and the legal basis for holding assets. Verify those entities separately when relevant.

13. Reconcile public disclosures

Compare the contract, website, quotation, disclosure documents and regulator records. Log inconsistent names, licence claims, fees or roles as unresolved issues.

14. Maintain a verification register

• Entity, activity and product

• Authority, licence or registration evidence

• Individual representative and mandate

• Shariah evidence and reviewer

• Exceptions, owner and next review date

Official starting points include the FSCA regulated-entity information, the Prudential Authority and the National Credit Regulator registers.

The completed record should show that the named entity has been checked for the stated activity and that regulatory permission and Shariah evidence were assessed as separate questions.