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20 November 2007

SFC Authorises First Retail Islamic Fund

The SFC has authorised the first Islamic fund for sale to retail investors in Hong Kong. Islamic funds aim to comply with the investment principles under the Islamic religious law of Sharia. The Shariah Principles generally preclude investments in businesses such as conventional financial services, alcohol, pork-related products, gambling, leisure and entertainment, etc. Shariah Principles also preclude interest bearing investments and investments in companies with unacceptable levels of debt. In support of the Government’s initiative to develop Islamic finance, the SFC has been working with industry participants to enable the introduction of Islamic financial products to the Hong Kong market. In view of the approval of the first retail Islamic fund, the SFC has posted investor education materials on our InvestEd website (www.InvestEd.hk) to highlight the key features of Islamic funds. Mrs Alexa Lam, the SFC’s Executive Director of Intermediaries and Investment Products, said: “Facilitating the development of the Islamic investment market is a high priority of the SFC. The introduction of Islamic retail funds gives added variety to our retail fund market and underscores the versatility of our asset management industry.” Ends