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Fund firms call for investment limit to be inflation-linked

Fund managers have welcomed the Government’s decision to keep Isas but are calling for the annual investment limit to be inflation-linked.

Fidelity, Invesco Perpetual and F&C say the annual investment limit has decreased significantly in real terms since it was set at 7,000 in 1999.

According to Office of National Statistics figures, if the annual 7,000 limit had risen with inflation, it would now be 9,380.

Since Isas were launched in 1999, UK investors have opened 16 million accounts and invested 190bn.

Fidelity head of IFA channel Peter Hicks says: “Isas were set at 7,000 when introduced and remain at 7,000 today, which is lower than the Pep limit they replaced. We would just like some recognition that their net worth has decreased.”

F&C director of communications Jason Hollands says: “Other tax allowances are reviewed on an annual basis but the Isa has been stuck at its current level since its inception. This is considerably lower than the various general Pep, single-company Pep and Tessa allowances which were replaced by the Isa.”

Invesco Perpetual marketing director Rick White says: “A long-term commitment has now been established but we believe that more can be done and more incentives could be introduced to boost saving.

“The Isa subscription levels have not changed since its inception in 1999 and the Government should look to upgrade this in line with inflation in the forthcoming Isa review.”


FSA bans firm for leaving customers without insurance

The FSA has banned ICM Group from carrying on regulated activities after it found the firm had left around 300 customers potentially without insurance by failing to pass on client premiums to insurers. ICM had used client money to run the daily activites of its business and the FSA has banned the company’s two directors […]

Keep in contact to keep clients

My mailbag has turned up some bizarre oddities which contrast the mortgage business with other areas of financial services so I thought I would share some of this with you this week.

Bolton attacks BM over his own mortgage offer

Edeus chief executive Michael Bolton launched a stinging attack on former employer HBOS this week in an extra- ordinary public slanging match between the two sides. Speaking at the Mortgage Intelligence 10th anniversary conference in Wales, Bolton said BM Solutions tried to “stuff” him personally on his mortgage with an offer 100 basis points above […]


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