Child Trust Fund Problems for Muslims
Muslims face lack of Sharia compliant Child Trust Fund accounts
7th February 2005
Muslims will be unable to invest the vouchers issued under the government's "baby bonds" scheme, as there is currently no child trust fund account that complies with Sharia law.
Under Islamic law, there are strict rules about financial investments, and none of the 29 accounts available follow these rules.
The difficulty is exacerbated by the fact that if the vouchers remain unused after a year, they will be automatically invested by the government on the baby's behalf - directly going against the parents' religion.
The Inland Revenue, who runs the scheme, acknowledged the lack of Sharia-compliant accounts, but said that there was nothing in the rules to prevent a suitable account from being set up by a muslim-friendly financial services provider.
Read More: Inland Revenue
|
More on Baby Bonds: Baby Bonds - An Introduction (Article, 20/12/2004), CTF Launch Underwhelms Parents (News, 01/06/2005), Estimated £300m Vouchers Not Yet Invested (News, 18/04/2005), Parents Still Confused by Baby Bonds (News, 23/03/2005), Baby Bonds - Official Launch (News, 11/01/2005), Major Fund Withdraws from Baby Bonds (News, 17/12/2004), See all 11 Baby Bonds stories >>> |
|
More on Muslim Finance : Lloyds Extends Islamic Banking Pilot (News, 15/11/2005), Islamic Mortgage Market Set for Growth (News, 29/07/2005), First Muslim Child Trust Fund Announced (News, 29/06/2005), Lloyds TSB Launches Muslim Mortgage (News, 22/03/2005), High Street Bank Offers Islamic Account (News, 16/02/2005), See all 7 Muslim Finance stories >>> |
Home - Investment - Child Trust Funds
