View more on these topics

Kelly says fund firms and life offices can offer child trust fund

Fund firms and life offices will be included in the distribution plans for the child trust fund, ending concerns that only banks and building societies would be allowed to sell CTFs.

Statements accompanying the pre-Budget report last November raised doubts among fund companies because, although it said the products would be sold on an open market basis, it only mentioned banks, building societies and friendly societies within that framework.

But in response to questions tabled by Conservative Shadow Paymaster General Stephen O&#39Brien last week, Treasury Financial Secretary Ruth Kelly confirmed that an open market will include fund managers and life insurers.

Kelly also said any further decisions about the scheme would be made as part of the normal Budget process.

There has been speculation that it could take up to three or four years for the scheme to start operating as it could require primary legislation to enable Government funding.

The Government will provide cash endowments to every child at birth and specified ages, believed to be six, 11 and 16, with the funds maturing at 18.

Fidelity spokeswoman Jo Roddan says: “We welcome this. Past performance shows that equities have outperformed cash over the long term. There was a definite need for fund managers to be able to participate in this scheme.”


Don&#39t cash in pension too early, warns FSA

The FSA is warning consumers of the pitfalls of accessing their pension pot before they retire. It says people should consider cashing in other investments before accessing the tax-free cash in their pension. The regulator says its initiative is aiming to counter recent TV, press and mail campaigns that have targeted over-50s who have occupational […]

The lure is an ass

The debate on savings policy often focuses on retirement provision and the so-called £27bn savings gap. But it is too simplistic to argue that, as people are not saving enough to enjoy retirement, they need to put more in their pensions. Policymakers sometimes ignore more subtle factors that shape savings needs and habits. For many […]

Correspondent&#39s week

Looking back on a week that involved an out-of-body experience, four seminars, over 200 IFAs, 72 virgins, a one-legged man, a TV remote control, a Skoda Fabia, gridlock on the M25, a farm in Dunstable, a cockerel and my daughter&#39s birthday. It was always going to be an interesting one. Straight to head office in […]

&#39Polarisation should be considerably loosened but how far do you go?&#39

MM: Has the time come for polarisation to end? MW: Polarisation was the right thing for 1988. At the time, there was no way of distinguishing between who was a broker and who was a tied salesman. Everyone had two business cards and called themselves whatever they wanted. The only way of brin-ging some order […]

The investment clock

While Trump blazes blond in the political foreground, it’s easy to overlook the economic background to the new political dimension of 2017. Political risk will be a feature of the year: the unpredictable and untested Trump administration has already created uncertainty, which is unlikely to diminish, especially if protectionist rhetoric starts to outweigh promises of […]


News and expert analysis straight to your inbox

Sign up


    Leave a comment


    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