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&#39Treasury and Revenue free of CTF misselling claims&#39

The Treasury and the Inland Revenue will be protected from any misselling allegations over child trust fund allocation, according to the Government&#39s response to the Treasury select committee&#39s second report into the CTF.

The Government&#39s response to the select committee&#39s report, published last week, disregards the committee&#39s advice to review the method it will use to allocate funds for families who fail to pick a provider for their child&#39s fund.

The CTF Bill says the Revenue will open an equity-based account and choose, by rota, the provider to manage the account.

Last week&#39s response states that legal advice obtained by the Government indicates that in the event of any subsequent difficulties, any accusations of misselling would be unsuccessful.

Committee members such as Labour MP Angela Eagle have raised concerns that the Government could face allegations of misselling if it places savings from low-income families with limited financial knowledge into equities.

The Building Societies&#39 Association and other groups have lobbied the Government but it is sticking to its commitment to equities for the CTF&#39s default option.

The BSA says that while investors will be shown comparative returns for funds invested in equities and those in cash, they may not be made fully aware of the comparative risks.

Spokeswoman Rachel Blackmore says: “People with the least financial capabilities will be the very people whose money will be put straight into equities apparently at random which will be totally inappropriate.”


Mutual life offices&#39 corporate governance to be reviewed

Financial Secretary to the Treasury Ruth Kelly has commissioned two independent reviews as a consequence of the findings of the Penrose inquiry. Paul Myners is to lead a review into the corporate governance arrangements applicable to mutual life offices, and will look at board accountability for mutual life offices and the level of regulation to […]

&#3959% of public would not buy an annuity&#39

Fifty-nine per cent of the population would not buy an annuity if they were not legally required to do so, according to research by Watson Wyatt. The survey of 3,500 people aged between 50 and 64 shows that 74 per cent say the principal reason for not wanting an annuity is the preference for flexibility. […]

CTF is complaint waiting to happen

Ever since the child trust fund was announced, I have been trying to work out how my business can afford to take any profitable interest in this new product and Government benefit. I now conclude that, irrespective of the lack of any real prospect of sufficient remuneration to make it worthwhile, this is a future […]

Fired up

Park Row Independent Mortgages managing director Kevin Paterson has raised £400 for Hampshire Fire and Rescue Service by completing in the Great South Run. Kevin runs the 10-mile race from Portsmouth every year but this year decided to raise money for the fire service benevolent fund following a serious house fire at his home last […]


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