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&#39Isa providers charging too much&#39

Isa providers are getting away with charging more for their products than pension providers, even though Isas are easier to administer, claims Scottish Equitable business development manager Steven Cameron.

Speaking at the National Association of Pension Funds annual conference in Birmingham last week, Cameron highlighted the poor take-up of Catmarked Isas, while most pension products are within the 1 per cent charge.

Cameron said: “Only the minority of Isas have adopted the Catmark. This seems strange considering the significantly greater administrative burden legislation puts on pensions.”

He says, while stakeholder products can offer access to managed funds within the 1 per cent cap, most Catmarked Isas are tracker funds.

But Isa providers maintain their funds are good value. Framlington Group marketing manager Neville Vyas says: “Astute investors do not always look at the price – they look at the quality of fund management.” But Vyas refuses to comment when asked whether Isa providers are making bigger profits than pension providers.

Jamieson Financial Management principal Bruce Jamieson says: “Life is not fair. But the 1 per cent cap is about the Government wanting to get stakeholder going.”

James Trickett & Son senior investment adviser Richard Moorfield says: “There is a perception that pensions are more expensive than Isas when they&#39re not. But there is more to the shift in perceptions – it is annuity rates that are turning people off.”


April mortgage lending surges

Mortgage lending in April was the highest since monthly records began in June 1998, according to figures from the Council of Mortgage Lenders and Department of Environment, Transport and the Regions.Lending increased by 5.3 per cent to £8bn in April 2001 from £7.6bn in March 2001, and up 27 per cent from £6.3bn in April […]

IFAs increase share of life protection market

New sales of life assurance policies increased by 25 per cent to 1.37m in 2000 from 1.1m in 1999, according to figures published by Swiss Re Life & Health.IFAs increased their share of the life protection market to 40 per cent in 2000 from 32 per cent in 1999. Swiss Re Life & Health UK […]

Government think-tank proposes scrapping inheritance

A key Government Cabinet Office think-tank is proposing banning inheritance as part of its plans to increase social mobility.In its discussion paper on social mobility, published this month, the Performance and Inno-vation Unit claims upward career and social mobility from manual to higher status occupations has declined.The PIU cites access to financial capital as one […]

Standard Life Investments – Standard Life European Private Equity Trust

Wednesday, 23 May 2001.Type: Investment trust.Aim: Growth by investing in private equity funds which invest in unquoted companies.Minimum investment: £50.Maximum investment: No maximum.Investment split: 100 per cent in private equity funds which invest in unquoted companies.Types of share: Ordinary shares.Isa link: NoPep transfers: No.Redemption date: None.Charges: Annual 0.8 per cent.Commission: None.Tel: 0800 333353.


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