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SEC says firm’s Sharia-compliant escrow misled customers

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By Al Barbarino (February 10, 2022, 8:35 PM EST) – The United States Securities and Exchange Commission said Thursday that a New York-based robo-advisor claims to be compliant with Sharia, or Islamic law, but has no policies and procedures in place to back it up, fining the company $300,000 and requiring an overhaul of its compliance program through an independent monitor.

Wahed Invest has claimed on its website and other marketing materials that it provides Shariah-compliant advisory services, including an “earnings purification process” to screen investments related to gambling, alcohol and to other vices deemed to deviate from Islamic law, but the company does not have written policies and procedures in place…

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