Senior Managers Regime and Sharia-compliant finance: Difference between pages

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imported>Doug Williamson
(Create the page. Source: FCA: https://www.fca.org.uk/publication/corporate/applying-smr-to-fca.pdf)
 
imported>Doug Williamson
(Capitalise Sharia.)
 
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''Financial services - UK''.
Sharia-compliant finance arrangements are ones which are in accord with Sharia law.


(SMR).


The UK's Senior Managers Regime aims to raise standards of governance, increase individual accountability and help restore confidence in the banking sector.
In Sharia-compliant finance and banking products, profit must be derived from commercial risk-taking and trading only, and all forms of interest are prohibited.


It defines and allocates key senior responsibilities to named senior individuals.
Sharia-compliant finance models therefore operate on the basis of risk sharing, to encourage operational investments which may be of benefit to the community.




==See also==
Furthermore, commercial investments should only support practices that are permitted.
*[[Anti money laundering]]
 
*[[Compliance]]
Thus, for example, trading in alcohol, pornography, financial services, pork, armaments, tobacco, gambling and other activities contrary to Sharia law are not allowed.
*[[Financial Conduct Authority]]
 
*[[Governance]]
 
Sharia-compliant finance is also sometimes known as ''Islamic finance''.
 
 
==See also ==
* [[General Council for Islamic Banks and Financial Institutions]]
* [[IIFM]]
* [[Ijara]]
* [[Islamic banking]]
* [[Murabaha]]
* [[Reverse murabaha]]
* [[Riba]]
* [[Sharia-compliant fixed income capital markets instruments for cross-border transactions]]
* [[Sukuk]]
 
[[Category:Accounting,_tax_and_regulation]]
[[Category:The_business_context]]
[[Category:Corporate_finance]]
[[Category:Investment]]
[[Category:Long_term_funding]]
[[Category:Identify_and_assess_risks]]
[[Category:Manage_risks]]
[[Category:Risk_frameworks]]
[[Category:Risk_reporting]]
[[Category:Cash_management]]
[[Category:Financial_products_and_markets]]
[[Category:Liquidity_management]]
[[Category:Trade_finance]]

Revision as of 16:22, 29 June 2021

Sharia-compliant finance arrangements are ones which are in accord with Sharia law.


In Sharia-compliant finance and banking products, profit must be derived from commercial risk-taking and trading only, and all forms of interest are prohibited.

Sharia-compliant finance models therefore operate on the basis of risk sharing, to encourage operational investments which may be of benefit to the community.


Furthermore, commercial investments should only support practices that are permitted.

Thus, for example, trading in alcohol, pornography, financial services, pork, armaments, tobacco, gambling and other activities contrary to Sharia law are not allowed.


Sharia-compliant finance is also sometimes known as Islamic finance.


See also