Written question asked by Barry Gardiner (Labour) on Thursday, 18 December 2003, in the House of Commons. It was due for an answer on Wednesday, 7 January 2004. It was answered by Ruth Kelly (Labour) on Wednesday, 7 January 2004 on behalf of the Treasury.

Treasury

Question: To ask Mr Chancellor of the Exchequer, what regulation there is to protect Muslims from mis-selling of housing finance that complies with Sharia law. - Includes ref to SI 2001/544 Financial Services and Markets Act 2000 (Regulated Activities) Order 2001.

Answer: Mr. Gardiner: To ask the Chancellor of the Exchequer what regulation there is to protect Muslims from mis-selling of housing finance that complies with Sharia law. [145720] Ruth Kelly: I understand that some Islamic home finance arrangements may already fall within the definition of a regulated mortgage contract under the Financial Services and Markets Act 2000 (Regulated Activities) Order 2001 (SI/2001 No. 544) and would therefore be covered by the regime that the Financial Services Authority (FSA) will be implementing from 31 October 2004. However, as explained in paragraph 36 of the consultation document `Regulating home reversion plans', we are seeking information on arrangements that are not reversion plans but which might nevertheless be caught by any legislative definition of a reversion plan if we decide to regulate home reversion plans. These might include alternative property financing arrangements that may be used by banks to provide housing finance which complies with Sharia law.

Secondary information