Pointon York Sipps target Muslim Brits
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Self-invested personal pension specialist Pointon York has launched a range of Sharia compliant Sipps for British Muslims.
Sharia compliant products are based on the ethical principles of Islamic, or Sharia, law. Anything that pays interest should be excluded from investments, along with unethical business activities such as gambling, pornography and tobacco. The new Sipp range will enable British Muslims to save for retirement with the tax benefits of a pension, without compromising their beliefs.
Pointon York has received Sharia compliant accreditation by the Islamic Bank of Britain for the Sipp range. The IBB is the UK’s only standalone Sharia compliant retail bank and will monitor the Sipps to ensure they remain sharia compliant.
The e-Sipp is a low-cost Sipp that is managed online. It comprises a range of risk-graded discretionary portfolios on the Praemium platform. The single investment Sipp is a step up from the e-Sipp, for people who want to invest in a single asset to reduce costs. Investors can choose one from a list of four Sharia compliant investments - deposit accounts with bank and building societies, unit trusts, Oeics and investment trusts, UK and international stocks and shares, or structured products. The individual Sipp is a full Sipp with the widest investment choice, including unquoted shares and commercial property which the other Sipps cannot hold. There is also a corporate Sipp is made up of the other three options. It enables employers to tailor pension provision to different levels of employees.
By offering a Sipp range, rather than just one sharia compliant Sipp, Pointon York has given British Muslims access to the tailored investment options available to other Sipp investors. However, research conducted by Ipsos Mori in July 2010 showed opinions differ among British Muslims about what is sharia compliant and for many respondants, a pension was not seen as a priority. Cost was also a concern and potential investors may see the wider investment options as too expensive.
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