Complex Compliance

03 Oct Complex Compliance

HM Treasury Sukuk

In June 2014, Her Majesty’s Treasury (“HM Treasury“) issued the first sovereign Sukuk outside of the Islamic World. It was designed to mimic a five year government gilt and offered a profit rate of 2.036%.

The Sukuk is listed on the London Stock Exchange and subject to the Disclosure and Transparency Rules (DTRs). It is genuinely unusual and, as far as we are aware, presented unique issues for the interpretation of the DTRs. It is not technically debt, it is issued by a non-government body, but ultimately owned and backed by the Treasury.

In order to ensure compliance with the rules, HM Treasury turned to Elemental. We were able to agree a pragmatic and compliant approach with the FCA and put in place processes and procedures to ensure that the Sukuk operates as desired.