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Investors confused about Tessa-only Isas, warns Pima

Consumers’ investment options are being limited bec- ause they are confused by marketing literature from providers about Tessa-only Isas, warns Pima.

Technical adviser David Beaston says the marketing material from some firms does not make it clear that Tessa-only Isas no longer formally exist and should be treated simply as cash Isas.

Beaston says the incorr- ect information means that investors are artificially lim-iting their investment opportunities by not being aware of the transfer options available to them, believing that they are limited to compatible investments.

He believes any firm still using the branding needs to amend its marketing mater- ial to remove the inconsistencies and provide consumers with a clearer description of their options.

Beaston says: “This marketing is confusing consumers and potentially limiting the opportunity that they have for investing their money. The marketing literature of these firms needs to be amended to address these issues.”

Tessa schemes were ended in April 1999 to coincide with the start of Isas although schemes opened before this date were still allowed to run their full five years.

Plan Invest investment manager Caroline Worswick says: “I can understand how this could be confusing to certain investors. More care should be taken to ensure that marketing literature is accurate. Perhaps the Government should clarify the subject, which would help, and there should be an education campaign by providers.”

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