Pointon York has is offering a range of Sharia-compliant Sipp products in response to demand from Muslim clients for suitable investment vehicles.
The Sipp specialist will make Shariacompliant investments available through four products, including the e-Sipp, the single investment Sipp, the individual Sipp and the corporate Sipp.
Pointon York says it is the first firm to get Sharia-compliant accreditation by the Islamic Bank of Britain for its full range of Sipps. Managing director Jo French says: “The launch of our Sharia-compliant Sipps is significant for IFAs with Muslim clients. It will finally allow them to include pensions into their retirement planning service without the concern that it may compromise the clients’ beliefs. This is the first time that UK IFAs will have access to Sipps accredited by the Islamic Bank of Britain.”
The IBB will monitor the Sipps to ensure they do not invest in non-compliant markets such as pornography, gambling and tobacco.
IBB commercial director Sultan Choudhury says: “British Muslims in particular have had very limited choices of Sharia-compliant products to invest in within their pensions. Retirement planning has therefore been neglected because, among other reasons, the specific needs of Muslims have not been addressed.”
Worldwide Financial Planning IFA Nick McBreen questions whether a Sharia-restricted Sipp would be attractive to investors.
He says: “I would be very interested to see under the bonnet of how Pointon York is doing this. How do you float a vehicle into the Sipp marketplace that does not have open architecture investment choice? If a Sipp does not have that, I would question why someone would use a Sipp at all.”