HM TREASURY News
Release (PN/136/08) issued by COI News Distribution Service. 11
December 2008
A joint
Treasury-FSA consultation on proposals for the legislative
framework for the regulation of alternative finance investment
bonds, which include sukuk, was launched today by Ian Pearson MP,
Economic Secretary to the Treasury.
Ian Pearson said today:
"This consultation is an
important part of the work Government is doing to support the
growth of Islamic finance in the UK and to increase our position
as a leading global centre in this market.
"The Government wants to ensure no one in the UK is denied
access to good financial services on account of their religious
beliefs. We value the contribution Islamic finance makes to
London's position as an international financial centre and we
want to see this sector continue to grow and prosper in this country."
As well as the consultation launched today the Government has
also published a new paper, 'The development of Islamic
finance in the UK'. This paper's purpose is to raise
awareness of the growing role of Islamic finance in the UK by
providing a stock take of achievements to date, as well examining
the remaining barriers to growth.
Notes for Editors
1. A copy of the Governments consultation:
Consultation on the legislative framework for the regulation of
alternative finance investment bonds (sukuk) can be found here:
http://www.hm-treasury.gov.uk/consult_sukuk.htm
2. This consultation sets out the proposed legislative framework
for the regulatory treatment of 'Alternative Finance
Investment Bonds'. AFIBs refer to a type of financial
instrument commonly known as sukuk or Islamic bond, but can also
refer to any financial instrument with similar characteristics.
This consultation paper considers the regulatory policy options
for these instruments.
3. A copy of the Governments paper on Islamic finance: The
development of Islamic finance in the UK: the Government's
perspective. can be found here:
http://www.hm-treasury.gov.uk/fin_islamic_finance.htm
4. Sukuk is an asset-backed, Shariah-compliant trust certificate.
The closest instrument comparable in the conventional financial
system would be a bond issued in relation to a securitisation.
5. Increased availability of Islamic Finance products is vital to
ensuring the Muslim community in Britain has equal access to
business opportunities. Banks such as Lloyds TSB, Royal Bank of
Scotland, and HSBC are all offering Shariah compliant products,
and London is also the home to a fully Shariah compliant retail bank.
6. Since 2003, the Islamic mortgage market has grown to over half
a billion pounds.
Non-media enquiries should be addressed to the Treasury
Correspondence and Enquiry Unit on 020 7270 4558 or by e-mail to public.enquiries@hm-treasury.gov.uk
This Press Release and other Treasury publications are available
on the HM Treasury website hm-treasury.gov.uk
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