Child Trust Fund Not Shari’ah Compliant, Changes Underway

February 5, 2005

Source: BBC News

On February 5, 2005 the BBC News reported, "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."