Yielders is First Islamic FinTech in UKbr>
London-based startup Yielders has become the UK’s first Islamic FinTech firm to be directly authorized by the Financial Conduct Council (FCA).
Yielders is an equity-based crowdfunding platform for UK property investment and is compliant with Sharia law, an important factor since Islamic law excludes gambling-related activities, borrowing investor money and charging interest. Before being given full authorization by Britain’s FCA, Yielders had to get approval from Britain’s Islamic Finance Council, which certified the company’s business practices were compliant with Sharia law.
The properties that investors buy shares on are pre-funded and already generating income. Individuals can invest as little as £100.
“The granting of full authorization demonstrates to current and future investors that Yielders’ regulatory and operational infrastructure has met with the strictest and highest standards demanded by the globally recognised FCA,” said Yielders founding director Irfan Khan. “We set out two years ago to create a fully Sharia complaint and regulated business, and this announcement shows our commitment to a long term strategy in providing an honest, competitive and inclusive opportunity for ethical and Islamic crowdfunding.”
The company said the approval signals the UK’s intent to become a destination for FinTech and Islamic finance.
“They (the UK government) believe that outside the Middle East, the UK is the capital of FinTech for Islamic finance,” said Khan. “There’s certainly movement in the UK to try to promote Islamic FinTech, and for FinTech firms in the UK to show the route forward for a lot of the Middle Eastern market.”
Before being given full authorization by Britain’s FCA, Yielders had to get approval from Britain’s Islamic Finance Council, which certified the company’s business practices were compliant with Sharia law.