From October 6, people aged over 50 can invest up to £10,200 in an Isa, with the rule applying to everyone from April 6, 2010.
Third-party Isa administrator IFDS head of marketing Julian Rice says: “Making changes mid-year and splitting it on age creates significant development needs. If providers are making technology changes, you have got to factor that in to make sure they are ready for October 6.”
Martin Currie head of product development Toby Hogbin says: “There will be an inevitable cost to change systems and other areas between October and April at a time when there is so much pain in a challenging market. The problem is you either incur the cost or cease to be an Isa manager.”
Investment Management Association director of authorised funds and taxation Julie Patterson says: “It is more of a nuisance to a number of Isa managers, such as the changes coming part way through the tax year and the rules applying to a sub-section of people. There are also flexibility concerns around turning 50 in that period.”
PSigma Asset Management marketing director Ian Chimes says: “We are hopeful the client supplying date of birth will be enough as it will effectively be self-regulation. If it is more than that, it could become a greater admin hurdle over a six-month period.”