HSBC First Bank to Offer Islam-Friendly Pension Fund

April 13, 2004

Source: Times Online,,8209-1072349,00.html

On April 13, 2004 the Times Online reported, "HSBC will this week become the first bank to offer an Islam-friendly pension fund to cater to Britain’s two million Muslims. The HSBC Life Amanah Pension Fund is compliant with Sharia, or Islamic law, which means that it does not hold shares in any companies that are unacceptable to Muslims. Investment in breweries and distilleries, casinos, publishers of pornography, producers of pork products, tobacco and conventional financial services has been ruled out by the fund’s managers. Any dividends that are generated by doctrinally unacceptable parts of a business will be 'purified' according to Sharia by being donated to charity through the HSBC Community Foundation rather than being distributed to investors...Julian Lyne, the head of institutional pooled funds at HSBC Asset Management, said that the fund had been approved by an independent panel of Islamic scholars. Interest is not permitted to Muslims but property ventures are popular."