The Insurance and Private Pension Regulation and Supervision Agency (SEDDK) has introduced new regulations aimed at strengthening corporate governance in participation insurance (takaful) and individual retirement plans.
With a Circular Amendment published on 12 August 2026, SEDDK introduced new regulations regarding the functioning of advisory committees. The new rules cover the preparation, recording, and monitoring of the implementation of advisory committee decisions.
The regulation clarifies the roles of the participation compliance unit and the participation compliance officer in the advisory committee processes, while also stipulating that committee agendas be prepared and decisions be recorded in a reasoned and traceable manner. Regular monitoring of the implementation of these decisions is also included within the scope of the regulation.
Advisory committee decisions
Under the new regulation, a common standard has been established for recording and documenting decisions. This includes the creation of a template for recording the minutes of advisory committees.
The template was designed to include essential elements such as meeting and participant information, the topic discussed, the decision made, the reasoning behind the decision, the decision-making procedure, and any dissenting opinions.
According to the new regulation, advisory committee decisions may be shared with the public and staff if deemed appropriate by the Board of Directors.
The aim is not only to record the decisions made by the advisory committees, but also to make it possible to trace the reasons behind and the methodology used to reach those decisions.
The regulation aims to strengthen compliance with participation finance principles, increase awareness and understanding of participation insurance and individual retirement plans, and support trust in the sector by increasing transparency and facilitating citizens' access to information.
Implementation issues and needs will be monitored
The circular amendment also aims to strengthen uniformity in decision-making processes. Advisory committees’ decisions are to be forwarded to the SEDDK for the industry regulator to monitor the practices, problems, and needs in the sector more closely. It is anticipated that the findings will serve as a resource for future legislative and policy-making efforts.