A quote from a press release of the Financial Services Authority (FSA), 28 November 2007

The FSA, the UK financial services regulator, has encouraged this growth [of Sharia banking] by providing an open and flexible regulatory environment, which accommodates both Islamic and non-Islamic financial institutions. It is the first European regulator to authorise a wholly Islamic bank. Other Islamic financial institutions have since been authorised. […]

FSA Chairman, Callum McCarthy, said: “Islamic finance is a fast growing force in the world economy and the FSA’s open and principle-based approach to regulation offers the right environment for it to flourish in the UK. There is huge potential for an expansion of Islamic offerings in the UK’s financial markets, which will in turn boost London’s position as an international financial centre.
“We believe in a ‘no obstacles, no special favours’ approach when authorising new financial institutions and welcome the development of this market as it provides certain UK consumers with financial products that are in line with their beliefs.”