View more on these topics

NDF bids for the maturing Tessas

NDF Administration is aiming for a big share of the£21bn maturing Tessa market with a Tessa-only Isa.

Tessa Triple Plus 2 is managed by Credit Suisse First Boston and offers tax-free ret-urns of up to 20 per cent a year.

Returns are linked to the FTSE 100 index but initial capital is 100 per cent protected as long as the investment is held for the five-year term.

There are no initial or annual charges but IFAs can take up to 3 per cent initial commission.

Toisa rules stipulate that only the initial capital of up to£9,000 can be transferred from a Tessa into a Toisa. But NDF is also offering a mini Isa product so investors can transfer up to a further£3,000.

The plan has two offer periods. The first offer runs until August 17 and the second offer period will extend from August 20 to September 28.

Managing director Anthony Stack says: “It is estimated that there are hundreds of millions of pounds in Tessa funds maturing each month over the next quarter. In addition, Tessa holders who have not yet reinvested Tessa maturities from earlier in 2001 now only have a limited time to reinvest in a Toisa. Once the six-month time limit from the original Tessa maturity is passed, this valuable tax relief is gone for ever.”

Recommended

FSA sets up whistleblowing service

The FSA is setting up a whistleblowing service for employees to inform on employers who break the law. The service is intended for employees unwilling to confront their employers about criminal offences and failures to comply with legal obligations such as setting up stakeholder pension schemes. The FSA is setting up a whistleblowers telephone line […]

Standard Bank Offshore widens choice

Standard Bank Offshore has introduced a fund of funds for offshore investors who have a cautious attitude towards risk.The cautious fund aims to produce capital growth and is denominated in either sterling or US dollars. Half of the portfolio is made up of bonds and the rest goes into stocks and shares and cash.The fund […]

Scotland funding move set to boost LTC market

The long-term care market in Scotland is set to boom following the Scottish Executive&#39s decision to extend funding to personal as well as nursing care, claim IFAs and LTC providers.They say the announcement in last week&#39s budget to commit£200m in funding over the next two years will make LTC insurance more affordable and more IFAs […]

Raising standards on moves to treat customers fairly

Open letter to the FSA The study published by the FSA on “treating customers fairly after the point of sale” made many valid comments which are supported by the Co-operative Insurance Society.The FSA states that unrealistic expectations are often the product of badly written information that fails to point out the risks or relevant features […]

How QE is distorting the gilt market

By Mike Riddell The moves in gilts in August were truly exceptional. Volatility in the gilt market (based off 10-year gilt futures) has soared to close to the highest levels seen this millennium, on a par with the eurozone debt crisis of 2011/12 and behind only the global financial crisis of 2008/09. The first distortion […]

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

    Leave a comment