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Just whose baby was the £800 bond idea?

There has been a scramble by product providers and thinktanks to claim authorship of the Government “baby bond” proposals although the idea has been dismissed by many IFAs.

Under the proposals announced last week, children will get an endowment of £800 to help give them a start in life, with strict guidelines applying to how the cash is invested.

The payment will be made in four instalments with an initial payment of £500 at birth, followed by payments at five, 11 and 16. Children whose parents&#39 income puts them over an unspecified threshold would receive half the sum.

Tunbridge Wells Equitable Friendly Society was quick to point out it had already registered “baby bond” as the name of its own proprietary child saving plan. AMP director of corporate affairs Richard Astle says AMP spon- sored the research of the left-leaning thinktank, the Insti-tute for Public Policy Res- earch which put forward the idea. But rival right-wing thinktank Adam Smith Institute claims it mooted the concept in 1995.

But the proposals received a thumbs down from IFAs, with Michael Philips partner Michael Both claiming the plan is pre-election bribery.

Fiona Price & Partners director Donna Bradshaw questions the source of Treas-ury advice. She says: “The Government never consults with IFAs, and relies instead on market research from provider sausage factories. This will just end up giving money to the hideously wealthy – it is gilding the silver spoon.”

Informed Choice managing director Nick Bamford says: “The cynicism of IFAs comes from us being continually lectured about low cost products that do not require advice by a Government which has marginalised us. We are repeatedly being told to target ourselves at the high net worth market. So when we are asked about proposals such as this it is not surprising we are not enthusiastic.”

AMP view, p16


Marsden fixes for five

Marsden Building Society has brought in the five year fixed rate mortgage.Available for both first time buyers and people looking to remortgage their homes, the mortgage has a fixed rate of 5.75 per cent for the first five years for loans of up to 90 per cent of valuation.The Marsden mortgage comes with £250 cashback […]

Cover chaos in LTC limbo

Legislative uncertainty and lack of regulation mean long-term care insurance could be being miss-sold, according to a leading campaigner for the elderly.Association of Retired Persons Over 50 director of social policy Don Steele says LTC is being sold without full knowledge of what the level of free healthcare will be and to what extent regional […]

Friends slated for block on windfalls

A Belfast IFA has lambasted Friends Provident for denying some rebate-only pension scheme members windfall payouts when it demutualises.Aon McMillen Consulting senior consultant Richard Oats says he was puzzled when colleagues and clients were sent paperwork to validate their claims to windfalls ahead of the demutualisation.Oats had joined a rebate-only pension scheme before Friends announced […]

L&G is set to withdraw Isa mortgage package

Legal & General is set to withdraw its Isa-linked mortgage package, citing plummeting sales of interest-only loans as the reason for the move.From May 18, L&G is pulling the plug on its Isa-backed flexible mortgage to concentrate on selling family protection products such as term insurance, critical-illness and mortgage payment protection insurance.It says the withdrawal […]

US election

Capital Market Notes, November 2016 David Lafferty, chief market strategist at Natixis Global Asset Management, looks at the impact on markets and portfolios since the somewhat surprising outcome of the US election. Click here


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