Islamic financial services and UK counterparts ‘must be separate’: CIMA

Islamic financial services and UK counterparts ‘must be separate’: CIMA

Islamic financial services and conventional UK services should work “side by side” but remain distinctly separate, according to the Chartered Institute of Management Accountants (Cima).

The organisation explained that unlike conventional UK services, Islamic finance complies with Sharia law and therefore cannot be subject to charges, interest or uncertainty.

John Willsdon, learning and development specialist for Cima, said that due to these principles, the two services must remain apart.

“From an Islamic perspective the Islamic products and services would be ‘tainted’ by the operations of the conventional side of the business,” he added.

A number of UK institutions offer Islamic products and services, continued Mr Willsdon, but they do so through separate “Islamic windows”.

Last month, the Financial Services Authority announced that with an annual growth of ten to 15 per cent, the Islamic finance industry is now worth £250 billion worldwide.

Cima recently reported that it is the first chartered accountancy body to offer a global qualification in Islamic finance.