Islamic firm approved by Britain’s financial authorities

An Islamic FinTech firm has today become the first of its kind to be authorised by Britain’s Financial Conduct Authority. FinTech firms are those using the latest technology to operate within the financial services industry. The London-based company Yielders, which provides services to retail investors, expressed pleasure over the decision. They claimed it was a sign of Britain becoming a prime destination for both FinTech and Islamic finance.

The founding director of Yielders, Irfan Khan, claimed this was a sign of the UK government’s belief that “outside the Middle East, the UK is the capital for FinTech and Islamic finance.”

Prior to this Yielders had to be granted approval from Britain’s Islamic Finance Council, which confirmed that the business’s practices were in line with Sharia Law.  Although firms that operate within the framework of Islamic finance also feature banks, capital markets, fund managers, investment firms and insurance companies, they differ from conventional firms in a number of ways. Firms complying with Islamic law prohibit interest, uncertainty-based transactions, gambling or investment in forbidden industries.

In the past, these restrictions have inhibited the growth of Islamic finance and reduced its ability to be competitive. However, its popularity has grown and voices within the British government, such as former Prime Minister David Cameron, have expressed hope that the industry will flourish in Britain.