Safety and due diligence
How do I choose a halal ISA provider?
A two-step due-diligence checklist: check the firm's regulation and the product's Shariah governance separately.
The short answer
Check two things separately: whether the firm is authorised or registered for the service, and whether the product's Shariah method, cash policy and oversight are clear and suitable for you.
Check the financial-services side
Use the FCA's Firm Checker to confirm the legal entity, permissions and contact details. Read the provider's ISA terms, fees, custody, complaints process and risk disclosures.
Use contact details from the FCA listing rather than those in an unexpected message or advert. This reduces the risk of dealing with an impersonator.
Shariah-compliance considerations
FCA status and Shariah governance are separate. FCA authorisation does not certify a product as halal. A Shariah label does not prove the firm is authorised.
Ask how investments are screened, who oversees Shariah checks, how often screens are updated, what happens after a downgrade, how cash is treated and whether the provider uses interest on uninvested balances.
What this means in practice
- 1Confirm the legal entity and permissions using the FCA's tools.
- 2Read ISA terms, fees, custody and risk disclosures.
- 3Read the full Shariah methodology and identify the review cycle and governance.
- 4Check cash-interest, purification and non-compliant-holding policies before funding the account.