Four Luxembourg-based companies have launched a Shariah-compliant platform offering custody and administration services for the “increasing number” of Islamic investment funds being domiciled in the country.
The Alliance for Luxembourg Islamic Finance (ALIF) has been created by Amanie Advisors, ADEPA Asset Management, Theisen Law and KBL European Private Bankers. The organisation said it plans to offer services including full Shariah supervision and monitoring, compliance monitoring, liaison with regulatory authorities for approval and the setting up of investment vehicles.
Assets within the registered funds will be prohibited from being used for short-selling, or in interest-based lending, and also prevented from investing in gambling, alcohol and pornography-related industries, which are all prohibited by Islamic law.
Carlos Alberto Morales, chief executive of ADEPA Asset Management, said: “Our clients will be able to take advantage of all the benefits of the Luxembourg fund structures and also have their funds administered locally in a professional and transparent way, and in a way that is in keeping with the religious practice.”
Each of the four companies will offer differing expertise with Theisen Law providing a legal framework, KBL in a custodial role, ADEPA offering fund services and Amanie in a Shariah advisory role.
According to ALIF, Luxembourg is the fifth largest domicile for Shariah-compliant funds which have an estimated $5.3bn in assets under management.