The following Financial Services practice note provides comprehensive and up to date legal information covering:
Shari'ah law is a set of Islamic principles adhered to by Muslims, and is derived from the central religious text of Islam, the holy Qùran, the Sunna (the path of the prophet) and other Islamic scriptures.
Shari'ah law governs nearly all aspects of Muslim life, including placing certain restrictions on the types of finance and investments available within Muslim countries. Investments that are considered unfair or unethical under Shari'ah law ie investments where the burden of risk is carried by only one party, are therefore prohibited. The guiding principles of Shari'ah have precluded Muslims from investing in many forms of conventional investment vehicles, predominantly those seen in the West. In consequence, the Shari'ah compliant investment market has seen a major surge in popularity in recent years to cater for the growing interest in this method of investment.
In general, Shari'ah compliant investments should encourage the attainment of halal, that is, ‘pure income’. This is achieved by adhering to a set of absolute basic principles:
Investments should be free from unjust enrichment.
This applies the Shari'ah principle of usary also known as interest or riba (see: Riba—interest, below).
The obtaining of a return through the application of interest is considered unjust. Instead Islamic finance is based on the ownership of assets (musharaka) and the sharing of risk (mudaraba). These
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Who is a fiduciary?There is no comprehensive list of the relationships which give rise to the existence of fiduciary duties under common law. Some relationships are automatically fiduciary, eg those between trustee and beneficiary, solicitor and client, principal and agent, business partner and
BREXIT: As of 31 January 2020, the UK is no longer an EU Member State, but has entered an implementation period during which it continues to be treated by the EU as a Member State for many purposes. As a third country, the UK can no longer participate in the EU’s political institutions, agencies,
The right to notice means a right for the employee to remain in employment for the period of notice, not simply to be paid for it. An employer will therefore often include in the contract an express right to make a payment in lieu of notice ('PILON') as an alternative to giving notice, to ensure
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