Advisers who offer Islamic mortgages are being warned of potential flaws compared with standard mortgages.Interest in Islamic mortgages to service the estimated 1.6 million Muslims in the UK is expec-ted to rise after the FSA last month opened a consultation on the regulation of home-purchase plans, as they are also known. The regulations are expected to come into force in spring next year alongside home-reversion plans. But a leading compliance consultant is warning of a basic potential flaw for unsuspecting intermediaries and consumers. FSA Compliance Consultants managing director Mazhar Manzoor warns that as Islamic law does not permit the payment of interest, the lender is effectively the homeowner, with the borrower paying rent to live in the property until the value is paid off. He says if a lender goes bust, the customer could be in trouble. Manzoor says: “There are all sorts of treating customers fairly issues with this. The customer is making an investment with the risk to capital and returns but without the rewards necessarily. This will become a massive area as more and more banks dip their toes into the market.” FSA director of retail policy Dan Waters says: “We have already done a lot of work in the field of Islamic financial services to improve consumer access to these products. We shall be working to promote wider public understanding of both of these products as part of our consumer edu-cation objective.”
William Lam has been appointed to join Invesco Perpetual’s Henley-based Asian equities team.Lam, who joins the team on May 22, will help to selectstocks from Taiwan and Korea across all funds managed by the Asian team.Lam was formerly an analyst at Orbis Investment Advisory, specialising in the global telecoms and technology sectors.
Equity-release rates could be set to rise across the market after Norwich Union and Northern Rock increased their lifetime mortgage charges. NU personal finance director of sales and marketing Darren Carter believes other providers could follow suit, reversing the trend of softening rates over the past year. Money Marketing revealed last month that an unnamed […]
Axa Isle of Man has launched two versions of its estate planning bond to overcome changes in the 2006 Budget.These new trusts aim to provide investors with greater flexibility in mitigating inheritance tax liabilities following changes to the tax treatment of some trusts announced by the Chancellor this year. One of the two trusts is […]
It has been very difficult for UK investors to invest in the Arab/Gulf Cooperation Council stockmarkets. The performance of these markets as measured by the Shuaa Capital Arab Comp index has been outstanding. It has risen by substantial amounts over the past five years although recently there has been a setback of around 15 per cent. This should be a buying opportunity.
Jelf Employee Benefits explores the draft Income Tax (Recommended Medical Treatment) Regulations 2014 and why intervention is such an important aspect of absence management.
- Top trends
News and expert analysis straight to your inboxSign up
Latest from Money Marketing
Trump’s announcements of tariffs on steel and aluminium have led to a much greater focus on the risks posed by his presidency We have had a rollercoaster start to 2018. January saw a rapid rise in global equities before markets succumbed to a technically driven sell-off, recovered a little, and sold off again on the […]
Legal & General has appointed Mark Jones to the role of product director of UK protection, within its insurance division. Jones joins from Sun Life. He will be responsible for the developer of both retail and group protection products, and will report into the managing director for UK protection, Steve Griffiths. Griffiths says: “We are […]