The specialist SIPP provider is the first to receive Sharia compliant accreditation by the Islamic Bank of Britain for its full range of SIPPs. The SIPPs will be available to retail customers through Independent Financial Advisers.
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. The CSIPP has three tiers providing flexibility according to employee levels. 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 the client to enjoy the tax benefits of a pension without compromising their beliefs.
As a flexible pension product, IFAs will be able to advise clients on a range of suitable investment assets for 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.
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, represents a new, and exciting, opportunity for IFAs with Muslim clients.”
Jo French, Managing Director of Pointon York, said:
"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.
"It will therefore provide IFAs with the right products to deliver bespoke tax and wealth management strategies to the Muslim community. This is the first time that UK IFAs will have access to SIPPs accredited by Islamic Bank of Britain.”
The new range of Sharia compliant SIPPs will also be of interest to employers and the IFAs they appoint to advise employees. It provides a long-awaited solution for Muslim staff that may have previously been reluctant to join a conventional pension scheme.
IFAs will now be able to offer employees a competitive Sharia compliant plan in which to enrol. This will also assist employers to meet the requirements of auto-enrolment earlier than the 2012 deadline.
Since the SIPPs have been accredited by IBB as Sharia compliant, Muslims can be assured that their pensions 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.
