Standard Life has launched a fully Sharia-compliant pension option, the Standard Life Sharia Universal Strategic Lifestyle Profile, for members of its workplace pension schemes.

The Sharia solution is fully certified to standards set by the Accounting and Auditing Organization for Islamic Financial Institutions (AAOIFI).

Standard Life partnered with HSBC Asset Management and Franklin Templeton to create a strategic lifestyle profile comprising growth and at retirement options to reflect distinct phases of the savings journey.

Standard Life’s Sharia Growth Pension Fund targets long-term growth for members more than 15 years from retirement, before switching into the Standard Life At Retirement Pension Fund that introduces a sukuk fund, which is a Sharia-compliant financial certificate, similar to a bond but structured differently to be Sharia compliant.

Standard Life managing director of workplace and retail intermediated (interim), Emma Furlonger, commented: “Our Sharia-based solution caters to those who want to invest in line with their values and beliefs, without compromising on the prospect of long-term growth.

“In adhering to Sharia Law, we have sought to strike a balance between appropriate investment risk and good outcomes to help savers secure their income in retirement,” she added.

The retirement specialist appointed an external Sharia adviser, iConsult Africa, to independently oversee development and provide consultation. A Sharia Supervisory Group has also been established to oversee sharia compliance elements of internal investments processes.

Chairing the Sharia Supervisory Group, iConsult Africa chair and independent Sharia adviser, professor Ziyaad Mahomed, said: “Offering a Sharia-compliant pension investment option is an important statement of inclusion.

“The Sharia principles of fairness and transparency are finding powerful resonance with demand for Islamic finance options growing in the UK.

“The increasing provision of Sharia-compliant options across the pension sector is to be welcomed as it provides the opportunity for Muslims to invest for retirement without

having to compromise on beliefs, while also finding wider appeal among other investors too,” he concluded.

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