The Shariah Dimension of Financial Planning (Planning Process ( The…
The Shariah Dimension of Financial Planning
Position of Shariah on wealth
Wealth should be used according to the guidelines provided by Allah. All activities related to wealth such as protection, investment should be conducted on the basis of the relevant Shariah guideline.
Shariah Financial Planning
A process of assisting clients in determining their financial goals and priorities and the resources to meet their optimally within the parameters of the Shariah.
Scope and Objectives
The recommendations address of the clients needs investments considerations management and takaful planing.
In Shariah financial planning, the scope should be widened to cover the requirements and recommendations of the Shariah.
Amanah and trust
Mutual hep and assistant
Honesty and integrity
Type of investment
Investment in this world
Cash and asset
Investment in the hereafter
Reward from God -Hasanat-
Incorporate of maqasid shariah in designing the priorities of the client
Preservation anf protection of inflect. (al-aql)
Preservation and protection of the (al-nafs)
Preservation and protection of religion (af-din)
Preservation and protection of progeny of dignity (al-'ird)(Nasl)
Preservation and protection of wealth (al-mal)
The process should ensure that Shariah guidelines are always applied and throughout the stage of developing and implementing the plan.
The SFP should remind the Muslim client of the broader and longer term goals of Shariah by having dual investment in this world and the hereafter.
The financial planner should avoid means of investment and deposit that are not Shariah complaint.
Proper discharge of financial obligations such as hajj, fulfillment of past debts etc should be duty for and gently implemented.
SFP is required to educate the Muslim Client on the Shariah procedures and requirement.
It is the responsibility of the planner that the plan that is designed with his collaboration be free from any objective from a Shariah angle.
It is important to identifying the underlying financial contract governing the business of financial planning. As they represent to the point of reference in Shariah compliance.
Shariah compliance assesment
Assessing the Shariah compliance of the services provided by the financial planner.