UPDATE-Property crowdfunding platform Yielders becomes first UK fintech company to be Shariah-certified

Photo: A man looks at property for sale at an estate agents in London, Britain August 4, 2016. REUTERS/Neil Hall

*Update inserts paras 7 & 8: Comment from UKIFC confirming Shariah certification and from Yielders about audits

Equity-based property crowdfunding platform Yielders has received Shariah certification, Irfan Khan, the start-up’s founder told Salaam Gateway.

According to Khan, Yielders is the first UK fintech company to be Shariah-certfied.

“We were keen to use an independent third party to ensure our Shariah credentials would stand up against any challenges,” said Khan.

The assurance process was managed by Islamic Finance Council UK (UKIFC).

According to Khan, the Shariah review looked “under the hood” of the business and included its: investment governance, monthly processes, legal documentation, client money handling, post-investment treatment of investors, rights and obligations of investors, and transparency of information.

“The Shariah assurance and certification was about implementing a full Shariah business within its foundations, which I believe we have been able to do as a fintech, not compromising as traditional financial institutions do. I truly believe this could be the birth of a new generation of Islamic finance,” Khan told Salaam Gateway.

UKIFC Executive Manager Umer Suleman said, "The UKIFC conducted a process review for Yielders and are pleased that Yielders have successfully received Shariah certification from UK Scholar Sheikh Abu Eesa."

Yielders' Irfan Khan told Salaam Gateway the company will be engaging a qualified practitioner to conduct annual audits.  

With Shariah certification in its pocket, the fintech platform now plans to increase its number of offerings and establish new products, which, Khan believes, could “revolutionise how home purchasing is done within the Islamic finance market.”

The start-up is also closing in on its second round of investment.

Khan says Yielders will now move forward to get direct authorisation from the UK’s Financial Conduct Authority.

Yielders is based in London and was launched in 2016. It is an appointed representative of Sapia Partners LLP, a firm authorised and regulated by the UK's FCA. 

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