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Peps

6.2 PEP CHANGES

Following the pre-Budget report announcement, draft regulations have been issued which will make changes to the PEP rules from 6 April 2001. These regulations include the following:


  • Abolition of the distinction between general and single company PEPs. In effect a single company PEP will be treated as a general PEP which means that the assets of that PEP need no longer be restricted to the shares of a single company.


  • Alignment of the qualifying investments for a PEP with those for an ISA by applying the ISA qualifying investments rules to PEPs. This will widen investment opportunities &#45 for example, ordinary shares will qualify provided they are quoted on a recognised stock exchange rather than having to be shares of a company incorporated in the European Union (EU ) which are quoted on a recognised EU stock exchange. Subject to certain conditions, a wider range of gilts will be qualifying investments and a wider range of corporate bonds will be available because, as for ordinary shares, they can be quoted on any recognised stock exchange or issued by a company which itself is quoted on any recognised stock exchange.


  • Part of a PEP can be transferred to a new manager not just a whole PEP as at present.

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