Pointon York launches Sharia-compliant SIPPs

Pointon York has launched four Sharia-compliant SIPPs for Muslim savers, available only through advisers.

Sharia law prohibits the charging of interest or fees on money lending, as well as investing in various businesses deemed unethical in Muslim tradition.

The SIPPs include a low-cost online product, a single investment vehicle, an individual full SIPP and a corporate SIPP.

Through the SIPPs, clients can invest in Sharia-compliant funds which exclude interest-earning transactions and investment in businesses such as pornography, gambling, speculation and tobacco.

The products are the first SIPPs to be accredited by the Islamic Bank of Britain (IBB).

"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," said Jo French, managing director of Pointon York.

"It will therefore provide IFAs with the right products to deliver bespoke tax and wealth management strategies to the Muslim community."

Sultan Choudhury, commercial director of the IBB said: "British Muslims 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."