New range of Sharia Compliant pensions launched

06 June 2011

Press Release

Pointon York has launched a range of Sharia compliant Self-Invested Personal Pensions (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 (IBB) for its full
range of SIPPs.

Pointon York will be offering four Sharia compliant SIPP products:

  1. e-SIPP. A low cost SIPP which can be easily managed online 
  2. Single Investment SIPP. A straightforward SIPP for clients wishing to invest in a single asset 
  3. Individual SIPP. A fully flexible SIPP allowing an extensive range of investments 
  4. Corporate SIPP. Suitable for employers, it has three tiers providing flexibility. It is made up of the e-SIPP, the Single Investment SIPP and the Individual SIPP. 

Each Sharia compliant SIPP is designed to meet the differing needs of investors. Importantly, they all allow investors to enjoy the tax benefits of a pension without compromising their beliefs. As a flexible pension product, the Sharia compliant SIPPs will allow Muslims to invest a range of assets into their „pot‟. These could include cash, Sharia compliant funds and property.

Sharia compliant products and investments can be best compared with the values of socially responsible investing. They are based on ethical and equitable principles, derived from Islamic law (Sharia). 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.

Commenting on the launch Sultan Choudhury, Commercial Director, IBB 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, therefore, represents a new opportunity for Muslims to invest for their future.”

Jo French, Managing Director of Pointon York, said: “The launch of our Sharia compliant SIPPs is significant for Muslims, their IFAs and employers; it will encourage all parties to consider pensions as an important tool when planning for their retirement. It will also provide IFAs with the right products to deliver bespoke tax and wealth management strategies to the Muslim community. Employers will also benefit by being able to offer staff a pension scheme in advance of the 2012 auto-enrolment deadline. This is the first time that Muslim employees, IFAs and employers will have access to SIPPs accredited by Islamic Bank of Britain.”

The new range of Sharia compliant SIPPs from Pointon York also provides an effective solution for employers with Muslim staff. Employees have previously been reluctant to join a conventional pension scheme are now able to enrol into a competitive Sharia compliant plan. This will also assist employers to meet the requirements of pension auto-enrolment earlier than the 2012 deadline. Since the SIPPs have been accredited by IBB as Sharia compliant, Muslims can be assured that their pension will not compromise the principles of their faith.

The new range of SIPPs from Pointon York has been accredited by IBB to ensure they meet all Sharia requirements. The Bank oversees the entire lifecycle of the product from setup to ongoing monitoring.

IBB is currently the UK‟s only standalone, Sharia compliant retail bank. The Bank was authorised by the Financial Services Authority (FSA) in 2004. As an inclusive bank IBB welcomes customers of all faiths and appeals to a wide spectrum of consumers drawn to its faith-based, ethical system.

Ends

About Islamic Bank of Britain 

Islamic Bank of Britain plc (Bank) has pioneered Sharia compliant retail banking in the UK and has launched a wide range of products, including the Home Purchase Plan (the halal mortgage alternative) Current Accounts and Savings Accounts. The Bank was also the first to introduce Sharia compliant business banking to the UK, and now offers a wide range of institutional and business banking products and services, including Commercial Property Finance. 

Several of the Bank’s products remain unique in the UK retail market. 

The Bank is authorised and regulated by the Financial Services Authority and is a member of Financial Services Compensation Scheme. All products offered by the Bank are fully approved by the Bank’s Sharia Supervisory Committee (SSC). 

Sharia compliant banking operates without the use of interest. The products that are offered are structured in a different way to those provided by conventional banks 

Whilst the Bank offers products and services that are designed in accordance with Sharia principles, it is an inclusive Bank and welcomes customers of all faiths. 

Notes to editors: 

Interviews with Islamic Bank of Britain are available on request. The bank should only be referred to as “Islamic Bank of Britain”. If abbreviated please use “IBB”. 

ENDS 

Issued by Islamic Bank of Britain Plc, Edgbaston House, 3 Duchess Place, Birmingham B16 8NH

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