Islamic and conventional financial services to "remain separate"

News Article - 21 December 2007
Category: Business

From an Islamic point of view, sharia-compliant financial products would be "tainted" if they are not kept completely separate from conventional UK services, businesses have been advised.

The Chartered Institute of Management Accountants has warned financial services that the two operate on completely opposite principles and that they must therefore not intertwine.

John Willsdon, learning and development specialist for the organisation, explained that in order to comply with sharia law, neither charges nor interest can be added to products. Both factors are fundamental to conventional UK financial practice.

He said: "Conventional UK financial institutions do offer Islamic products and services, but through Islamic 'windows' or subsidiaries whose activities are kept separate from their conventional counterparts."

The Financial Services Authority reported that the Islamic finance industry was worth around £250 billion worldwide during November. This figure was estimated to grow at around ten to15 per cent per annum.

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