Shariah-compliant SIPPs aimed at Muslim savers

Pointon York has launched a range of four Sharia-compliant SIPPs to meet the growing demand from Muslims for a suitable retirement vehicle. 

The specialist SIPP provider is the first to receive Sharia-compliant accreditation by the Islamic Bank of Britain for its full range of SIPPs. They will be available to retail customers through independent financial advisers.

Each Sharia-compliant SIPP is designed to meet the differing needs of investors. Importantly, they all allow the client to enjoy the tax benefits of a pension without compromising their beliefs. 

The most recognisable principle of Islamic finance is that products and services operate without interest. Investments must exclude all interest-bearing transactions and should also exclude unethical business activities such as pornography, gambling, speculation and tobacco.

Sultan Choudhury, commercial director of the Islamic Bank of Britain, said: “People are being alerted to the risks of not putting enough aside in pensions for their retirement.

“British Muslims in particular have had very limited choices of Sharia-compliant products to invest within their pensions. Retirement planning has therefore been neglected because, amongst other reasons, the specific needs of Muslims have not been addressed.

“The launch of Pointon York’s range of SIPPs, accredited by IBB, represents a new and exciting opportunity for IFAs with Muslim clients.”