12.2.1. Application

TRR 12.2.2 (Takaful Operators to give notice of decision to cease business) and TRR 12.2.3 (Takaful Operators in run-off not to effect certain contracts) apply to a Takaful Operator that ceases or decides to cease to effect new Takaful Contracts or to renew Takaful Contracts:

(a) in a category in which the Takaful Operator has previously effected Takaful Business; or

(b) in respect of a Family Takaful Fund, in a category in which the Takaful Operator has previously effected Takaful Business through that Family Takaful Fund.

12.2.2 Takaful Operators to give notice of decision to cease business

A Takaful Operator to which this Rule applies must, within 28 days of a decision to cease to effect new Takaful Contracts in a category, notify the AFSA of its decision, in a notice specifying the following details:

• (a) the effective date of the decision to cease effecting Takaful Contracts;
• (b) the category to which the decision relates; and
• (c) where relevant, the Family Takaful Fund to which the decision relates.

12.2.3. Takaful Operators in run-off not to effect certain contracts

(1) A Takaful Operator who has provided a notice to the AFSA in accordance with TRR 12.2.2 must not effect any Takaful Contracts in that category without the written permission of the AFSA.

(2) Where the notice referred to in TRR 12.2.2 relates to a Family Takaful Fund of the Takaful Operator, the restriction set out in this rule applies only to that Family Takaful Fund.