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.

Advertisements

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s