Alfi publishes best practices for setting up, servicing Islamic funds in Luxembourg
Alfi, the Association of the Luxembourg Fund Industry, has moved to shore up the domicile’s position as a place to set up and service Islamic funds by publishing a new document outlining best practices for the sector.
Luxembourg is already ranked first in Europe by number of domiciled Shariah compliant funds, with some 41 funds and assets of about €4bn, according to Alfi.
The new best practices guide offers information on the legal framework, the fund set-up process, administration, custody and depository bank services for Islamic funds in Luxembourg.
It also provides an indicator of whether Islamic finance instruments are compatible with Luxembourg UCITS laws. This is intended to enable service providers already active in the area to offer more consistent levels of service, as well as provide guidance to new entrants.
Marc Saluzzi, chairman of Alfi said:” Most service providers in Luxembourg already have dedicated teams looking at Shariah funds. This collection of best practices will further contribute to establish Luxembourg as the centre of reference for servicing Shariah compliant funds, whether they are domiciled here or elsewhere.”
Luxembourg’s links to Islamic finance go back to the 1970s. In 1978 it hosted the first Islamic finance institution to set up in a western country. Five years later, the first Shariah-compliant insurance company in Europe was established in Luxembourg and, in 2002, Luxembourg was the first European stock exchange to list a sukuk.
Click here to read:[asset_library_tag 6181,Alfi Islamic Funds Guidelines]