Oh, for goodness sake.........

Layezee · 2005-02-06T10:22:31+00:00

More bending over backwards by the hard pressed majority for the not so down trodden big bloody chip on their shoulders minority...... Muslim families in receipt of Child Trust Fund vouchers are currently unable to use them as the available accounts do not comply with Sharia law. Islamic law forbids all forms of financial interest and has strict rules about the kind of products Muslims can invest in. And if the industry does not respond to the demand, in a year the Inland Revenue will invest on behalf of these families, against their religion. However, the Inland Revenue told the BBC it hopes the finance industry will set up a Sharia compliant account as there is nothing in the rules to prevent it from doing so. The new Child Trust Fund (CTF) will be launched in April, and all parents of children born from 1 September, 2002, are getting at least 250 from the government to invest in special accounts for their child's future. There are currently 29 CTF accounts available in the UK, with some allowing parents to save in interest-paying cash accounts, and others which invest in shares. But as Ibrahim Mogra, a Leicester Muslim explained: "Unfortunately, at the moment there is no CTF where I could invest that money on behalf of my child because the places where the government has recommended are not Sharia compliant." Ethical investors Other ethical investors also face a lack of choice. There is only one suitable account, which is being offered by the Co-operative Insurance Society (CIS). Speak"The funds are not invested in any tobacco companies, any weapons, arms or nuclear power companies, anything like that. It is the only ethical stakeholder CTF." However, the lack of choice concerns Scott McAusland from EIRIS, the Ethical Investment Research Service. He told Money Box: "It is important there are more funds that match the principals and views of the investors, of the parents who are investing on behalf of their children, which match the aspirations...

Feb 06, 2005 22 Replies

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robertmlaws 21 years ago

The new financial deals are open everyone surely aren't they?

Robert

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Fred 21 years ago

Does that mean they can claim housing benefit for the "rental" portion?

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Eric Jones 21 years ago

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Quote '' On the contrary. An uninvested CTF is invested by default in 2006 by the government into a non-Sharia compliant stakeholder CTF. So I think there is a genuine complaint here.'' How can this be? If you are issued with a voucher it is a piece of paper with a nominal value which only accrues true value when you invest it.If you decide not to invest - surely it is a no cost to taxpayer. Eric

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