View more on these topics

Few IFAs plan to sell new child trust funds

IFAs have welcomed the launch of child trust funds, although few have committed to selling them.

Last week, the Government unveiled the child savings vehicle as it sent out seven million letters to potential claimants of child benefits.

>From next April, parents of children born from September 1, 2002 will receive a voucher worth 250 to be invested in a tax-free savings fund. Parents who earn less than 13,000 a year will get a further 250.

The vouchers will be paid into the savings plan which will charge no more than 1.5 per cent commission. Any money not invested within 12 months will then be invested into a default stakeholder fund.

While some IFAs remain non-plussed by the scheme, Chelsea Financial Services has committed to selling CTFs and hopes that they will boost consumer saving.

Chelsea managing director Darius McDermott says: “They are a great scheme and will give children a good start in life. The money from the fund could be used for a deposit for a house or for paying university fees.”

The Financial Management Group partner Chris Mellor says his firm is unlikely to sell CTFs. “It’s just not worth it. All you would make on it would be 3.75. It’s another one of these Government wheezes for lowincome people,” he says.

Recommended

JPMF wants to break free

JPMorgan Fleming has established the JPMF Europe dynamic (ex-UK) Fund, an Oeic that invests in a portfolio of 50-100 European stocks.

Make the network for you

One of the key reasons given for the reform of polarisation is the need to give consumers a wider and fairer choice of financial products. The wisdom or otherwise of this thinking has already occupied many column inches so all I will add is that such changes might never have been put forward if our […]

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

    Leave a comment

    Close

    Why register with Money Marketing ?

    Providing trusted insight for professional advisers.  Since 1985 Money Marketing has helped promote and analyse the financial adviser community in the UK and continues to be the trusted industry brand for independent insight and advice.

    News & analysis delivered directly to your inbox
    Register today to receive our range of news alerts including daily and weekly briefings

    Money Marketing Events
    Be the first to hear about our industry leading conferences, awards, roundtables and more.

    Research and insight
    Take part in and see the results of Money Marketing's flagship investigations into industry trends.

    Have your say
    Only registered users can post comments. As the voice of the adviser community, our content generates robust debate. Sign up today and make your voice heard.

    Register now

    Having problems?

    Contact us on +44 (0)20 7292 3712

    Lines are open Monday to Friday 9:00am -5.00pm

    Email: customerservices@moneymarketing.com