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Bowes warns of dangers in plan for Isa equity switch

AWD Chase de Vere says the Government is being “duplicitous” with its Isa reforms and risks massive consumer detriment by not allowing a switch back from shares to cash.

Investments manager Anna Bowes says the danger in the reforms, laid down last week, is that people are much more likely to take advantage of the move from cash to shares when the markets are high.

She says for the majority of investors it would be a “terrible idea” to use the switching option and those that believe they have built up too much cash should seek advice before making a decision.

Bowes says the changes to allow the switch from cash to shares but not the other way “smacks of a ploy to actually reduce overall cash holdings in Isas as they have a vested interest in seeing this happen”.

She says: “We feel that the Government is being duplicitous by allowing investors to switch from cash into stocks and shares but not to switch back at a later date if required. There is really no clear message with these new rules.

“The danger of allowing the transfer out of cash is that people are far more likely to take advantage when stockmarkets are at a high rather than when things have taken a tumble.

“Basically, even though this option has been introduced, we feel that for the majority of investors it would be a terrible idea to utilise it. However, if they feel they have built up too much cash over the years, it would be wise to seek independent financial advice before making the switch.”


Just Retirement turns the tables

Just Retirement and The Hartford edged out more established providers to take two of the top three places in Sesame’s first provider service index.Just Retirement was ranked top for service by members, followed by Skandia and Hart-ford. Friends Provident and Standard Life were fourth and fifth. Axa received the lowest ranking out of 21 firms, […]

Reliance Mutual takes Hearts in friendly first

Reliance Mutual Insurance Society has bought friendly society Hearts of Oak.The deal is believed to be the first to use the new powers introduced under the 2007 Finance Act, which enable friendly societies to be acquired by insurance companies without the loss of the beneficial tax treatment of their business.Hearts of Oak has been renamed […]

GBST Holdings buys InfoComp

Global Banking and Securities Transactions Holdings has bought Australian technology firm InfoComp for £23.6m.The two companies will combine and the acquisition by the Australian Stock Exchange listed company will be funded out of cash from reserves and a AUS£8.4m debt facility.GBST is the largest provider of securities transaction processing in Australia, supplying its financial services […]

Leading Edge – April 2017

There is little doubt 2017 will be a year of political uncertainty. Leading Edge is Royal London Asset Management’s regular review of investment markets. This edition explores some of the impacts that this uncertainty is having on investors, from the pitfalls of prediction within UK equity investing to the dangers of opting for convenience over […]


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